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Firm: The Inside Story of McKinsey, The World's Most Controversial Management Consultancy
They helped invent the bar code. They revolutionized business schools and created the corporate practices that now rule our world. They reinvented the idea of American capitalism and aggressively exported it across the globe. McKinsey employees are trusted and distrusted, loved and despised. They are doing behind-the-scenes work for the most powerful people in the world, and their ranks of alumni include the chairman of HSBC and William Hague.
Renowned financial journalist Duff McDonald uncovers how these high-priced business savants have ushered in waves of structural, financial, and technological shifts but also become mired in controversy across the years. Discover how the firm both endorsed and celebrated Enron’s disastrous corporate structure and how they’ve been instrumental in the Coalition’s controversial NHS reforms. Are they worth their astronomical fees? And what do firms and governments actually get for their money? Based on exclusive interviews with key McKinsey players and written in gripping prose, this is a revealing window onto one of the most secretive and powerful companies in the world.
Renowned financial journalist Duff McDonald uncovers how these high-priced business savants have ushered in waves of structural, financial, and technological shifts but also become mired in controversy across the years. Discover how the firm both endorsed and celebrated Enron’s disastrous corporate structure and how they’ve been instrumental in the Coalition’s controversial NHS reforms. Are they worth their astronomical fees? And what do firms and governments actually get for their money? Based on exclusive interviews with key McKinsey players and written in gripping prose, this is a revealing window onto one of the most secretive and powerful companies in the world.
400 pages, Kindle Edition
First published August 6, 2013
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5821 people want to read
About the author
Duff McDonald
7 books83 followersDuff McDonald is a journalist and the author of Last Man Standing, a biography of JPMorgan Chase CEO and chairman, Jamie Dimon. A contributing editor at Fortune magazine and the New York Observer, he has written for Vanity Fair, New York magazine, Esquire, GQ, Wired, and Time, and has been awarded two Canadian National Magazine Awards. He lives in New York.
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Displaying 1 - 30 of 253 reviews
July 3, 2018
Q:
Any chief executive who hires a consultant to give them strategy should be fired. (c)
Q:
You can forecast anything. Delivering actual results is a different story. (c)
Q:
“And McKinsey never really left the building. A decade later, when John Birt, then director-general of the BBC, stepped down from his job, McKinsey brought him on as a part-time consultant. In 2005 Birt severed all ties with the firm after critics suggested that working for 10 Downing Street in London and McKinsey posed a conflict of interest—as if hiring him shortly after extracting millions of pounds out of the BBC hadn’t been. Birt’s replacement at the BBC’s helm—Greg Dyke—immediately slashed spending on outside consultants by 75 percent.” (c)
Q:
“What you get from Harvard Business School is a wonderful network of people who were there with you and a set of tools that you can then bamboozle people with for the rest of your life,” Radio 4 business reporter Peter Day told London’s Sunday Times in 2009.” (c)
Q:
“Smart clients say that the best way to use McKinsey is not to let them insinuate themselves—to prohibit walking the halls of the client’s offices looking for new business. Jamie Dimon of JPMorgan Chase, for example, will hire McKinsey, but for one-off projects in which the entire body of knowledge generated is transferred to JPMorgan Chase at the end of the project. The firm’s operating committee has to approve any consulting engagement, and the JPMorgan Chase executives don’t take just any consultants; they pick and choose the specific people they want on the project.” (c)
Q:
It’s the only job I can think of where you start in general management, and then, if you’re successful, you end up in sales ... (c)
Q:
major private equity firm. “We don’t need them for strategy. But they will do anything you want them to do, including filling out spreadsheets. I use them at twenty cents on the dollar so I don’t have to hire more associates. They generally cost me about a hundred thousand dollars a week. (c)
Q:
How the fuck can you coach a football team if you’ve never played football in your life?” he continued. “And I’m not talking pro. I’m talking at any level. They don’t have a clue. I don’t care how many hours they spent firing people at Time Inc. or Meredith Corporation. They had this stupid red/yellow/green system, which they explained to me like I was a five-year-old. (c)
Q:
It says much that Matassoni, who went on to spend five years at BCG after leaving McKinsey, still considers himself a McKinsey man above all else. “BCG asked me how come their alumni aren’t as happy as McKinsey’s,” he said. “I told them it was simple, that when a guy left BCG they shat all over him and considered him a failure. When people leave McKinsey, they are counseled out and are proud of their time there.” There is no McKinsey boneyard, in other words; you’re still McKinsey, even after you’ve left. (c)
Q:
E. N. B. Mitton, a mining engineer who joined the British office of Bedaux in the 1930s, joked at the time that he would rather tell his mother that he was working “as a pianist in the local brothel” than admit that he had joined a consulting firm. (c)
Q:
Consultants will carry information in and information out. The client has to decide which of those flows is worth more. (c)
Q:
McKinsey can also be hired when one executive needs “disinterested” support for an idea that might just also result in the removal of an internal rival. Lee Iacocca wrote in his autobiography that when Henry Ford wanted Iacocca out of the firm, he hired McKinsey to recommend a new organizational structure. Iacocca went to Chrysler, where he used Bain & Company instead of McKinsey. (c)
Q:
(c) Но кто же такие консультанты McKinsey на самом деле? Специалисты по вопросам управления и сокращения расходов, козлы отпущения и катализаторы корпоративных перемен. Бизнесмены в квадрате. Элитное подразделение властелинов бизнеса, локальная армия, скрытно выполняющая закулисную работу для самых могущественных людей мира. Как они это делают? Скажу так: и посторонние люди, и они сами сравнивают методы своей работы с теми, к которым прибега
ют иезуиты, американские морские пехотинцы и католическая церковь. Работники McKinsey настолько нежно относятся к себе, что и в тех случаях, когда надо сохранить анонимность, настаивают на персонализации: для посторонних они – сотрудники некой консалтинговой компании, а «для своих» – Фирмы.
(c) Дуг Айер, работавший консультантом McKinsey с 1962 по 1968 год, вспоминал, как поделился с Бауэром своими планами относительно предстоящего катания на лыжах. «Он сказал, что считает катание на лыжах непрофессиональным занятием, – рассказывал Айер. – Я рассмеялся. А он был серьезен. Он сказал: “Ты рискуешь сломать ногу, что помешает твоей работе с клиентами”. Я ответил, что все равно поеду, но ценю его мнение».
Any chief executive who hires a consultant to give them strategy should be fired. (c)
Q:
You can forecast anything. Delivering actual results is a different story. (c)
Q:
“And McKinsey never really left the building. A decade later, when John Birt, then director-general of the BBC, stepped down from his job, McKinsey brought him on as a part-time consultant. In 2005 Birt severed all ties with the firm after critics suggested that working for 10 Downing Street in London and McKinsey posed a conflict of interest—as if hiring him shortly after extracting millions of pounds out of the BBC hadn’t been. Birt’s replacement at the BBC’s helm—Greg Dyke—immediately slashed spending on outside consultants by 75 percent.” (c)
Q:
“What you get from Harvard Business School is a wonderful network of people who were there with you and a set of tools that you can then bamboozle people with for the rest of your life,” Radio 4 business reporter Peter Day told London’s Sunday Times in 2009.” (c)
Q:
“Smart clients say that the best way to use McKinsey is not to let them insinuate themselves—to prohibit walking the halls of the client’s offices looking for new business. Jamie Dimon of JPMorgan Chase, for example, will hire McKinsey, but for one-off projects in which the entire body of knowledge generated is transferred to JPMorgan Chase at the end of the project. The firm’s operating committee has to approve any consulting engagement, and the JPMorgan Chase executives don’t take just any consultants; they pick and choose the specific people they want on the project.” (c)
Q:
It’s the only job I can think of where you start in general management, and then, if you’re successful, you end up in sales ... (c)
Q:
major private equity firm. “We don’t need them for strategy. But they will do anything you want them to do, including filling out spreadsheets. I use them at twenty cents on the dollar so I don’t have to hire more associates. They generally cost me about a hundred thousand dollars a week. (c)
Q:
How the fuck can you coach a football team if you’ve never played football in your life?” he continued. “And I’m not talking pro. I’m talking at any level. They don’t have a clue. I don’t care how many hours they spent firing people at Time Inc. or Meredith Corporation. They had this stupid red/yellow/green system, which they explained to me like I was a five-year-old. (c)
Q:
It says much that Matassoni, who went on to spend five years at BCG after leaving McKinsey, still considers himself a McKinsey man above all else. “BCG asked me how come their alumni aren’t as happy as McKinsey’s,” he said. “I told them it was simple, that when a guy left BCG they shat all over him and considered him a failure. When people leave McKinsey, they are counseled out and are proud of their time there.” There is no McKinsey boneyard, in other words; you’re still McKinsey, even after you’ve left. (c)
Q:
E. N. B. Mitton, a mining engineer who joined the British office of Bedaux in the 1930s, joked at the time that he would rather tell his mother that he was working “as a pianist in the local brothel” than admit that he had joined a consulting firm. (c)
Q:
Consultants will carry information in and information out. The client has to decide which of those flows is worth more. (c)
Q:
McKinsey can also be hired when one executive needs “disinterested” support for an idea that might just also result in the removal of an internal rival. Lee Iacocca wrote in his autobiography that when Henry Ford wanted Iacocca out of the firm, he hired McKinsey to recommend a new organizational structure. Iacocca went to Chrysler, where he used Bain & Company instead of McKinsey. (c)
Q:
(c) Но кто же такие консультанты McKinsey на самом деле? Специалисты по вопросам управления и сокращения расходов, козлы отпущения и катализаторы корпоративных перемен. Бизнесмены в квадрате. Элитное подразделение властелинов бизнеса, локальная армия, скрытно выполняющая закулисную работу для самых могущественных людей мира. Как они это делают? Скажу так: и посторонние люди, и они сами сравнивают методы своей работы с теми, к которым прибега
ют иезуиты, американские морские пехотинцы и католическая церковь. Работники McKinsey настолько нежно относятся к себе, что и в тех случаях, когда надо сохранить анонимность, настаивают на персонализации: для посторонних они – сотрудники некой консалтинговой компании, а «для своих» – Фирмы.
(c) Дуг Айер, работавший консультантом McKinsey с 1962 по 1968 год, вспоминал, как поделился с Бауэром своими планами относительно предстоящего катания на лыжах. «Он сказал, что считает катание на лыжах непрофессиональным занятием, – рассказывал Айер. – Я рассмеялся. А он был серьезен. Он сказал: “Ты рискуешь сломать ногу, что помешает твоей работе с клиентами”. Я ответил, что все равно поеду, но ценю его мнение».
October 25, 2013
I'll be the first to admit that the audience for this book is pretty narrow. In addition to McKinsey alums looking for a shout out, the folks like me who are intrigued by the art of management and those folks interested in the (I'd argue contradictory) impulse to contract management's accountability out to MBA gunslingers, are pretty rare birds.
If you are in one of those categories, you will greatly enjoy Duff McDonald's "no-agenda" relaying of the history of McKinsey and consulting.
First, the short-falls: General Motors in the 90's; AT&T wireless and Enron were all multi-million dollar clients; and McKinsey totally missed the internet and tech revolution. Too often, to keep a client -- McKinsey "plays the role the (client) company has scripted" -- and this stands in the way of it's ability to eventually deliver quality in many engagements. Maintaining the multiple millions of dollars GM spent in the 1990's on its way to bankruptcy, for example, can blind McKinsey to seeing what the "numbers" are really suggesting.
However, in a world full of talkers and blowhards, McKinsey is supremely capable of bringing the focus back to the data and research, and usually to efficient effect. Modeling this rigor is a great gift to leaders - no matter what sector they find themselves in.
Management guru, Gary Hamel referred to the machinery of management as one of humanity's greatest inventions in his 2007 book, "The Future of Management." If McKinsey hasn't in fact invented many of the bold ideas of management, since it's founding in the 1920's by James O. McKinsey, it has certainly helped clients understand them and carry them out. And for that, alone, they have made a mighty contribution.
If you are in one of those categories, you will greatly enjoy Duff McDonald's "no-agenda" relaying of the history of McKinsey and consulting.
First, the short-falls: General Motors in the 90's; AT&T wireless and Enron were all multi-million dollar clients; and McKinsey totally missed the internet and tech revolution. Too often, to keep a client -- McKinsey "plays the role the (client) company has scripted" -- and this stands in the way of it's ability to eventually deliver quality in many engagements. Maintaining the multiple millions of dollars GM spent in the 1990's on its way to bankruptcy, for example, can blind McKinsey to seeing what the "numbers" are really suggesting.
However, in a world full of talkers and blowhards, McKinsey is supremely capable of bringing the focus back to the data and research, and usually to efficient effect. Modeling this rigor is a great gift to leaders - no matter what sector they find themselves in.
Management guru, Gary Hamel referred to the machinery of management as one of humanity's greatest inventions in his 2007 book, "The Future of Management." If McKinsey hasn't in fact invented many of the bold ideas of management, since it's founding in the 1920's by James O. McKinsey, it has certainly helped clients understand them and carry them out. And for that, alone, they have made a mighty contribution.
June 2, 2015
Ah business books. You sit there with the allure of time spent not only being entertained but worthily garnering all sorts of useful life skills or at the very least a snippet or two that you can use to hint at far deeper knowledge. Very rarely they actually entertain, challenge or inform, in fact around one percent of the time. The other 99% goes a little bit like this
1. I had a decent newspaper article and i turned into a long book
2. I had an title which would be really exciting but could not find any evidence for it really. In this case that McKinsey has a secret influence on American business. Its not really that secret.
3. I am trying to bring a fresh angle so will hold multiple contradictory thoughts
a) McKinsey sucks up really useful talent who would change the world but lack any individuality or the risk appetite to have a real impact
b) McKinsey rips off its clients because it really does not deliver anything except inflated fees but yet is able to wreck companies.
The fundamental issue is this. Business is not all that interesting - case in point I have sat in countless meetings and never, not once has someone suggested hiring an assasin to get rid of a particular problem. Someone once threw a water bottle at someone which was plastic so again not all that interesting. Whats even less interesting then business usually is consulting to business. Which in my time consisted of being asked to run endless analysis while pretending to be really chipper about it all so that the partner could come back and tell you that it was all tremendously useful and appreciated. Then after a certain stage you go to the meeting as well and realize that no-one in their right mind is ever ever going to read it and if they did they are not going to do anything about it, you then surpress that thought because it would do incalculable damage to your self esteem.
Its all a bit duff like this book.
1. I had a decent newspaper article and i turned into a long book
2. I had an title which would be really exciting but could not find any evidence for it really. In this case that McKinsey has a secret influence on American business. Its not really that secret.
3. I am trying to bring a fresh angle so will hold multiple contradictory thoughts
a) McKinsey sucks up really useful talent who would change the world but lack any individuality or the risk appetite to have a real impact
b) McKinsey rips off its clients because it really does not deliver anything except inflated fees but yet is able to wreck companies.
The fundamental issue is this. Business is not all that interesting - case in point I have sat in countless meetings and never, not once has someone suggested hiring an assasin to get rid of a particular problem. Someone once threw a water bottle at someone which was plastic so again not all that interesting. Whats even less interesting then business usually is consulting to business. Which in my time consisted of being asked to run endless analysis while pretending to be really chipper about it all so that the partner could come back and tell you that it was all tremendously useful and appreciated. Then after a certain stage you go to the meeting as well and realize that no-one in their right mind is ever ever going to read it and if they did they are not going to do anything about it, you then surpress that thought because it would do incalculable damage to your self esteem.
Its all a bit duff like this book.
October 13, 2013
This is an updated company history of McKinsey, the strategic consulting firm that has been so successful that it has come to define the standard for providing management advice. The story follows the firm from its inception to the recent insider trading scandal involving former managing director Raj Gupta.
The book presents a curious mix of popular acclaim, criticism of the dark sides of the consulting business (legitimating management decisions, justifying downsizing, providing inside information from other clients, etc.), and some occasional insights into how this odd business works and how these firms make money. The basic narrative is well known to anyone who has followed McKinsey in the popular business press and the relatively few quality popular books on the area (The Witch Doctors, for example). Some of the additional insights into the industry is lifted (with attribution) from other sources such as Alfred Chandler or Kiechel's The Lords of Strategy. Overall, the story is well known, but the updating of the McKinsey firm into the 2000's is useful and worth reading to anyone interested in following the industry. The style is typical of the higher end business trade press and is not difficult to follow. This fills the niche for consultants that recent books about Goldman Sachs do for investment bankers.
The book presents a curious mix of popular acclaim, criticism of the dark sides of the consulting business (legitimating management decisions, justifying downsizing, providing inside information from other clients, etc.), and some occasional insights into how this odd business works and how these firms make money. The basic narrative is well known to anyone who has followed McKinsey in the popular business press and the relatively few quality popular books on the area (The Witch Doctors, for example). Some of the additional insights into the industry is lifted (with attribution) from other sources such as Alfred Chandler or Kiechel's The Lords of Strategy. Overall, the story is well known, but the updating of the McKinsey firm into the 2000's is useful and worth reading to anyone interested in following the industry. The style is typical of the higher end business trade press and is not difficult to follow. This fills the niche for consultants that recent books about Goldman Sachs do for investment bankers.
December 27, 2022
Wow, what a tour de force of business/financial reporting. For anyone interested in the “black box” of McKinsey, I can’t recommend this book strongly enough (caveat that you have to have a real interest in the subject - this isn’t a book for those with a casual or passing interest in McKinsey - it’s too in-depth to be fascinating to people not already into it). But for those with a real interest in learning about the history, successes, challenges, and (changing) culture/values of McKinsey, Duff McDonald’s book is a goldmine.
I especially appreciate McDonald’s even-handed approach: he doesn’t vilify or blindly laud any particular decision or individual; instead, he analyzes the firm’s management, culture, and signature engagements with great thoughtfulness and nuance. His background in and knowledge of Harvard Business School and Goldman Sachs, as well as his years of conducting investigative financial journalism add to his depth of reporting.
Just excellently done. Now I’ve got his more recent work, The Golden Passport, at the top of my to-read pile.
I especially appreciate McDonald’s even-handed approach: he doesn’t vilify or blindly laud any particular decision or individual; instead, he analyzes the firm’s management, culture, and signature engagements with great thoughtfulness and nuance. His background in and knowledge of Harvard Business School and Goldman Sachs, as well as his years of conducting investigative financial journalism add to his depth of reporting.
Just excellently done. Now I’ve got his more recent work, The Golden Passport, at the top of my to-read pile.
July 31, 2017
Well written and researched book, but highly misleading. The tagline of the book is click bait. It's not a tale of a controversial firm. It's a promotional book, massively in favour of them.
All of the "gotcha" moments weren't compelling enough for me to be suspicious of McKinsey. In fact I finished the book respecting what they have achieved. They co-invented the barcode and the White House Chief of Staff!
This book shares some interesting things about McKinsey and you should only read if you work there or interested in the company.
All of the "gotcha" moments weren't compelling enough for me to be suspicious of McKinsey. In fact I finished the book respecting what they have achieved. They co-invented the barcode and the White House Chief of Staff!
This book shares some interesting things about McKinsey and you should only read if you work there or interested in the company.
August 1, 2021
Started this book expecting some new insights (as the name loudly sells it “The secret into..”) and all I saw is just gossip. The biggest insight probably is, McKinsey - like any other companies - has its ups and downs (with office politics, buyouts, alliances and so on). If you are interested in name-dropping and gossips, maybe give this book a try.
January 2, 2014
Duff McDonald's business writing has always been underlined by his expertise (in addition to writing for the likes of Fortune, Vanity Fair, New York, Conde Nast Portfolio, and many other publications, he is the author of a biography of Jamie Dimon and has himself worked on Wall Street). His writing is clear, brimming with content, and infused with a story-teller's instinct for narrative. This detailed account of the entire history of McKinsey showcases all those positives, while nicely elucidating the role this shadow company has played in shaping contemporary America. Bravo: not an easy assignment.
May 17, 2014
This book is worth a read. That said, there are some clear pros & (minor) con worth considering:
PROS:
* Walks you through the entire history in sufficient detail
* Provides good explanation behind why the firm changed the way it did at times
* Highlights its strength & weaknesses in an objective fashion
CONS:
* This is a minor point but I feel that the author uses speculation to hint at his understanding of things that we don't really know for sure such as assumptions that "CEOs who hire consultants routinely are not confident in their ability to lead and need someone to vet their decisions" - I could not find any good reason in the book to believe that to be true
PROS:
* Walks you through the entire history in sufficient detail
* Provides good explanation behind why the firm changed the way it did at times
* Highlights its strength & weaknesses in an objective fashion
CONS:
* This is a minor point but I feel that the author uses speculation to hint at his understanding of things that we don't really know for sure such as assumptions that "CEOs who hire consultants routinely are not confident in their ability to lead and need someone to vet their decisions" - I could not find any good reason in the book to believe that to be true
July 9, 2024
Одна из лучших бизнес-историй, прочитанных мною
Написано, конечно, несколько суховато, с нарочитой смесью иронии и восхищения по отношению к предмету исследования. McKinsey предстаёт перед читателем как нечто монуметально величественное и фундаментально бесполезно-аналитическое одновременно
В своей жизни я когда-то конкурировал с McKinsey за персонал. Они развернули в "Азовстали" программу Тотальной оптимизации производства, а я вёл программу модернизации ИТ и бизнес-процессов на базе SAP. Всё по одной из книг, которую эта компания пропагандировала тогда ("Война за таланты"). Конкуренция была жёсткой, иногда даже жестокой. Где-то побеждал авторитет мировой консалтинговой компании, а где-то драйв и энергия лысого и бородатого мужика (на самом деле 28-летнего юнца) из Киева, приехавшего делать из "Азовстали" лучшую компанию в стране по охвату и глубине внедрения процессов автоматизации и информатизации. Тем не менее, моё уважение к McKinsey за умение собрать данные, проанализировать их и продать результат тогда только укрепилось
А вот история, описанная автором, это - история не про уважение, а
* про американские горки и про роль генеральных директоров в истории компании,
* про фундаментальные принципы и ценности, заложенные самим МакКинси (да, он существовал) и Марвином Бауэром,
* про уход от этих принципов в разное время в разные стороны и по разным причинам из-за новых CEO и требований то ли эпохи, то ли внутренних настроений в компании,
* про практики найма, управления знаниями пиара и, увы, увы, торговли информацией (что, впрочем до конца не доказано, но автор об этом так и пишет),
* про ошибки и провалы компании,
* и про веру как в фундаментальное влияние McKinsey на экономику США и мира, так и в тотальное отсутствие положительного влияния ни на что, кроме карманов партнёров компании
В общем, читается это всё как детектив-нуар на фоне 20 века, хотя вроде к концу все остались живы и никого не зацепило (миллионы сокращённых с подачи основного продукта McKinsey о последнем поспорят)
Очень и очень рекомендую
Написано, конечно, несколько суховато, с нарочитой смесью иронии и восхищения по отношению к предмету исследования. McKinsey предстаёт перед читателем как нечто монуметально величественное и фундаментально бесполезно-аналитическое одновременно
В своей жизни я когда-то конкурировал с McKinsey за персонал. Они развернули в "Азовстали" программу Тотальной оптимизации производства, а я вёл программу модернизации ИТ и бизнес-процессов на базе SAP. Всё по одной из книг, которую эта компания пропагандировала тогда ("Война за таланты"). Конкуренция была жёсткой, иногда даже жестокой. Где-то побеждал авторитет мировой консалтинговой компании, а где-то драйв и энергия лысого и бородатого мужика (на самом деле 28-летнего юнца) из Киева, приехавшего делать из "Азовстали" лучшую компанию в стране по охвату и глубине внедрения процессов автоматизации и информатизации. Тем не менее, моё уважение к McKinsey за умение собрать данные, проанализировать их и продать результат тогда только укрепилось
А вот история, описанная автором, это - история не про уважение, а
* про американские горки и про роль генеральных директоров в истории компании,
* про фундаментальные принципы и ценности, заложенные самим МакКинси (да, он существовал) и Марвином Бауэром,
* про уход от этих принципов в разное время в разные стороны и по разным причинам из-за новых CEO и требований то ли эпохи, то ли внутренних настроений в компании,
* про практики найма, управления знаниями пиара и, увы, увы, торговли информацией (что, впрочем до конца не доказано, но автор об этом так и пишет),
* про ошибки и провалы компании,
* и про веру как в фундаментальное влияние McKinsey на экономику США и мира, так и в тотальное отсутствие положительного влияния ни на что, кроме карманов партнёров компании
В общем, читается это всё как детектив-нуар на фоне 20 века, хотя вроде к концу все остались живы и никого не зацепило (миллионы сокращённых с подачи основного продукта McKinsey о последнем поспорят)
Очень и очень рекомендую
November 18, 2022
One of the best book about McKINSEY, it was so informative. Highly recommended for people interested in management and consulting.
April 11, 2023
A comprehensive, thoroughly researched book about the history of McKinsey & Company, one of the most influential consulting firms in the world.
Clearly, the company has had a big influence on large corporations around the world, still attracts good talent, has a great alumni base, and keeps a level of prestige attached to it. However, based on the narrative in the book and some external opinions, seems like, largely, the business model of the company is about selling noninnovative, best practice ideas over and over again to large, broken corporations under the disguise of well-packaged presentations and polished personnel. Additionally, the firm has faced criticism for its role in advising companies that have been involved in controversial or unethical activities. Though, I guess, any of the big, successful companies at some point faced such issues.
Recommended read for the ones interested in the glamorous management consulting business.
Clearly, the company has had a big influence on large corporations around the world, still attracts good talent, has a great alumni base, and keeps a level of prestige attached to it. However, based on the narrative in the book and some external opinions, seems like, largely, the business model of the company is about selling noninnovative, best practice ideas over and over again to large, broken corporations under the disguise of well-packaged presentations and polished personnel. Additionally, the firm has faced criticism for its role in advising companies that have been involved in controversial or unethical activities. Though, I guess, any of the big, successful companies at some point faced such issues.
Recommended read for the ones interested in the glamorous management consulting business.
May 1, 2018
Book # 22 The Firm: The Inside Story of McKinsey
This book by McDonald is like a BBC documentary on McKinsey (except for the fact that it took much longer to complete than watching a documentary!) – and as goes with BBC Documentaries sometimes (closest example is their work on Putin) – it is opinionated at times with ambivalent statements and self-contradicting conclusions.
The book traces the story of McKinsey – how James McKinsey founded the firm in the 1920s in effect giving birth to the consulting industry and how after his pre mature death, Martin Bower led McKinsey laying down its principles and ground rules to emerge as one of the most influential firms in America with its services being used by the most prestigious companies across sectors and even Governments. The first part of the book traces the story of how McKinsey came to be, its early clients, weathering the storm of new entrants like BCG (‘’McKinsey is Microsoft to BCG’s Apple – never ahead but still having resources to chase the leader’’), the intellectual cachet that McKinsey commands and how its partners (its biggest strength – its network and alumni) have shaped the world in more ways than you can imagine – almost all the major works in this domain have a McKinsey stamp on it.
The second part of the book while lauding some of its achievements, takes a critical look at McKinsey’s failure with clients post the Bower era – most notable under Rajat Gupta when the firm recorded highest revenues but on the back of some questionable and botched assignments – as McDonald puts it McKinsey turned a profession into a money spinning machine. He talks about the Enron failure and how McKinsey played a part there, wrong advice and failure to read the market trends given to AT&T (they had mobile technology ready in 1980 only to be put down by McKinsey execs that the market would never grow the way it turned out to be!!) , HP Compaq M&A, diversification and investment strategy that went wrong for Swiss Air and the part they played in major M&As in the financial sector (Wachovia – Golden West Financial) leading up to the 2008 crisis. McDonald puts it this way – McKinsey follows the precept – we only advice and have nothing to do with the client’s final outcome – and still gets away with it. The last part of the book discusses the Rajat Gupta, Anil Kumar fiasco in detail where McDonald insinuates that the firm has lost its ethicality when a former Managing Director and Director are embroiled in Insider trading charges – case of bad apples or the firm values gone wrong – he takes an extreme and might I add – a one sided view.
The book fundamentally asks the question – Has McKinsey made the world better? Has it helped businesses the way it intended to? And he answers in an ambivalent manner – Yes or maybe No – an answer occasionally pointing towards the former but majorly hinting towards the latter.
Decent Read. Though would love to read more on this.
#52BooksIn2018 #30ToGo
This book by McDonald is like a BBC documentary on McKinsey (except for the fact that it took much longer to complete than watching a documentary!) – and as goes with BBC Documentaries sometimes (closest example is their work on Putin) – it is opinionated at times with ambivalent statements and self-contradicting conclusions.
The book traces the story of McKinsey – how James McKinsey founded the firm in the 1920s in effect giving birth to the consulting industry and how after his pre mature death, Martin Bower led McKinsey laying down its principles and ground rules to emerge as one of the most influential firms in America with its services being used by the most prestigious companies across sectors and even Governments. The first part of the book traces the story of how McKinsey came to be, its early clients, weathering the storm of new entrants like BCG (‘’McKinsey is Microsoft to BCG’s Apple – never ahead but still having resources to chase the leader’’), the intellectual cachet that McKinsey commands and how its partners (its biggest strength – its network and alumni) have shaped the world in more ways than you can imagine – almost all the major works in this domain have a McKinsey stamp on it.
The second part of the book while lauding some of its achievements, takes a critical look at McKinsey’s failure with clients post the Bower era – most notable under Rajat Gupta when the firm recorded highest revenues but on the back of some questionable and botched assignments – as McDonald puts it McKinsey turned a profession into a money spinning machine. He talks about the Enron failure and how McKinsey played a part there, wrong advice and failure to read the market trends given to AT&T (they had mobile technology ready in 1980 only to be put down by McKinsey execs that the market would never grow the way it turned out to be!!) , HP Compaq M&A, diversification and investment strategy that went wrong for Swiss Air and the part they played in major M&As in the financial sector (Wachovia – Golden West Financial) leading up to the 2008 crisis. McDonald puts it this way – McKinsey follows the precept – we only advice and have nothing to do with the client’s final outcome – and still gets away with it. The last part of the book discusses the Rajat Gupta, Anil Kumar fiasco in detail where McDonald insinuates that the firm has lost its ethicality when a former Managing Director and Director are embroiled in Insider trading charges – case of bad apples or the firm values gone wrong – he takes an extreme and might I add – a one sided view.
The book fundamentally asks the question – Has McKinsey made the world better? Has it helped businesses the way it intended to? And he answers in an ambivalent manner – Yes or maybe No – an answer occasionally pointing towards the former but majorly hinting towards the latter.
Decent Read. Though would love to read more on this.
#52BooksIn2018 #30ToGo
August 3, 2020
The Firm: The Story of McKinsey and Its Secret Influence on American Business is exactly what it sounds like, a book on the history of McKinsey and a primer on what the multinational company does. The book chronicles McKinsey from its inception as a small professional firm focusing on organization structure ti the massive behemoth specializing in strategy, knowledge collection, transformational change, and a range of other specialties.
McDonald does not hold back on the myriad of scandals and critiques leveled at McKinsey over the years. Critics describe the firm as full of pompous, arrogant, snake oil salesmen. According to these critics, McKinsey repackages the same catechisms and cliche ideas for generations. They latch on to companies and deliver what executives want to hear rather than what they need (or so critics say) On top of this, McKinsey has been full of huge controversies ranging from a managing director being convicted of insider trading to faulty advice that has led many a company to bankruptcy.
With that said, McDonald does acknowledge McKinsey's spikes. The firm's analytical prowess and ability to generate industry knowledge are unrivaled in the industry. The firm's alumni network is among the strongest in the world and is the arguably the number one producer of CEOs. While the Firm's value can be hard to measure, the fact that companies continue to pay a premium to receive McKinsey's services speaks leagues to how respected their work has been.
This book showed me how easily corruptible businesses are and the importance of a strong value system. Overall, I would not recommend this book to anyone except those who have a strong curiosity to learn about McKinsey or are interested in working there. The book could be extremely monotonous at times and the structuring of chapters made the beginning hard to follow (lots of quickly jumping back and forth in time). I enjoyed this read for the sole reason that I learned more about my future employer, the good and the bad.
McDonald does not hold back on the myriad of scandals and critiques leveled at McKinsey over the years. Critics describe the firm as full of pompous, arrogant, snake oil salesmen. According to these critics, McKinsey repackages the same catechisms and cliche ideas for generations. They latch on to companies and deliver what executives want to hear rather than what they need (or so critics say) On top of this, McKinsey has been full of huge controversies ranging from a managing director being convicted of insider trading to faulty advice that has led many a company to bankruptcy.
With that said, McDonald does acknowledge McKinsey's spikes. The firm's analytical prowess and ability to generate industry knowledge are unrivaled in the industry. The firm's alumni network is among the strongest in the world and is the arguably the number one producer of CEOs. While the Firm's value can be hard to measure, the fact that companies continue to pay a premium to receive McKinsey's services speaks leagues to how respected their work has been.
This book showed me how easily corruptible businesses are and the importance of a strong value system. Overall, I would not recommend this book to anyone except those who have a strong curiosity to learn about McKinsey or are interested in working there. The book could be extremely monotonous at times and the structuring of chapters made the beginning hard to follow (lots of quickly jumping back and forth in time). I enjoyed this read for the sole reason that I learned more about my future employer, the good and the bad.
March 22, 2020
A well-researched and compiled piece on what goes/went on inside "the firm". Every chapter had logic threads of continuity running through it - a rare trait in company narratives that generally tend to be more prosaic. It's hard to make these topics into page-turners, but the author does his fair share to keep you hooked.
The one thing became evident in due course was a pro-bias towards the McKinsey "spirit". It was portrayed as this entity that was out there to save humanity, and could no so selfish good deeds. Every positive outcome was attributed to the firm's "value" guided practices. Every negative outcome, on the contrary, was pinned on individual follies. The consultants and their excellence are often referred to in the hyperbole, almost to the level of sycophancy. For a second print from the author, I was hoping he'd get into contrasting processes across firms, diving deeper into the Rajat scandal or a little technical. It turned out to be a linear narration of all the company heads and how wonderful, bringing mutually exclusive traits to the table (how convenient).
All said and done, it was a well thought out book. Not exactly the leisure couch and wine kind. The language and continuity were great. Would recommend a read. But unfortunately, I haven't been able to take much away from this book, for the effort that goes into reading it.
The one thing became evident in due course was a pro-bias towards the McKinsey "spirit". It was portrayed as this entity that was out there to save humanity, and could no so selfish good deeds. Every positive outcome was attributed to the firm's "value" guided practices. Every negative outcome, on the contrary, was pinned on individual follies. The consultants and their excellence are often referred to in the hyperbole, almost to the level of sycophancy. For a second print from the author, I was hoping he'd get into contrasting processes across firms, diving deeper into the Rajat scandal or a little technical. It turned out to be a linear narration of all the company heads and how wonderful, bringing mutually exclusive traits to the table (how convenient).
All said and done, it was a well thought out book. Not exactly the leisure couch and wine kind. The language and continuity were great. Would recommend a read. But unfortunately, I haven't been able to take much away from this book, for the effort that goes into reading it.
September 3, 2016
In my second year of management consulting, I'd worked on a project that involved detailing the history of Management Consulting as an industry. So, could connect very well with the details provided in the book from inception to evolution to current state of McKinsey. Plus, I have been a management consultant, though for a very short period of 13 months and could relate to the author's arguments about how McKinsey, a large organisation with no tangible product influences not just the corporate, but also the public sector.
A recommended read for past/ current/ aspiring management consultants.
A recommended read for past/ current/ aspiring management consultants.
March 5, 2017
I was attracted to the book by its title - McKinsey. I like to learn how McKinsey became the world-leading consulting firm. This book shared the whole history of the firm, how it was founded and the rise and fall for the last 80 years.
To me, this book is more like a history book of the firm, not many ideas on how they did it. Most parts of the stories were elaborating their legendary leaders, I was hoping to find out about the strategies instead.
To me, this book is more like a history book of the firm, not many ideas on how they did it. Most parts of the stories were elaborating their legendary leaders, I was hoping to find out about the strategies instead.
February 20, 2014
Great read to get an understanding of macro biz trends during the past 100 years, and to learn (arguably) who (McKinsey) has influenced them, and how.
I work in an agency, so it's interesting to read how a consulting firm can scale its business like McKinsey has. I took notes and learned something.
I work in an agency, so it's interesting to read how a consulting firm can scale its business like McKinsey has. I took notes and learned something.
May 8, 2021
If you want to join McKinsey read it or else you can pass. There is nothing that makes you sit up and say aha!
August 17, 2020
As an incoming b-school candidate, it's rather typical of me to be reading this. I'd heard a great deal about McKinsey, BCG, and the likes but your average fan-stories by aspiring consultants seem to tell only one unhelpful fact about McKinsey, which is just how cool/invincible it is. Those who don't aspire to be one also seem to have taken the "god" status of Mckinsey as a given.
This is not to say that I discredit the whole profession, but reading this book gave me a much more wholesome picture of the consulting industry and its leader of nearly a century.
Why I liked the book:
1. It doesn't seem to be mindlessly praising/fawning at everything McKinsey has done. The book is as unbiased as it can get. It gives Mckinsey credit where it's due, and points out the ironies where they are so obvious. That helps take Mckinsey down the made-up throne of the corporate-business world and renders it in the same light as you would any industry/company- with all its inconsistencies, hyperboles, ethical issues, and fallibilities.
2. The man Mckinsey had a brilliant idea and he set it up well in an economy that needed it (post-depression boom). There were leaders who came in and left and tried to do the best they could with the opportunities the economy offered them during their times. This painted a nice picture for me of how an organization grows, pivots, struggles to stay relevant in the context of its times.
3. Consulting as an industry is interesting because of what they sell, which essentially is, knowledge, research, and advice. Being able to do it so massively, profitably, and over a century tells us a lot about how money can be made and how value can be generated in an economy.
4. I was glad to read some of the questions the book has asked which somehow none of the consulting aspirants/fans ever seem to be talking about (maybe I need to talk to more)
-What value has the company created for its client and for the world (maximizing profits vs causing mass layoffs)
-What is behind all the hype and arrogance?
- What role did the company have in some of the worst corporate decisions ever made (2008 recession for instance)
So, overall, the book helped me with exactly what I needed to know- "a complete picture of Mckinsey". It repeats itself a lot and could have been shorter.
This is not to say that I discredit the whole profession, but reading this book gave me a much more wholesome picture of the consulting industry and its leader of nearly a century.
Why I liked the book:
1. It doesn't seem to be mindlessly praising/fawning at everything McKinsey has done. The book is as unbiased as it can get. It gives Mckinsey credit where it's due, and points out the ironies where they are so obvious. That helps take Mckinsey down the made-up throne of the corporate-business world and renders it in the same light as you would any industry/company- with all its inconsistencies, hyperboles, ethical issues, and fallibilities.
2. The man Mckinsey had a brilliant idea and he set it up well in an economy that needed it (post-depression boom). There were leaders who came in and left and tried to do the best they could with the opportunities the economy offered them during their times. This painted a nice picture for me of how an organization grows, pivots, struggles to stay relevant in the context of its times.
3. Consulting as an industry is interesting because of what they sell, which essentially is, knowledge, research, and advice. Being able to do it so massively, profitably, and over a century tells us a lot about how money can be made and how value can be generated in an economy.
4. I was glad to read some of the questions the book has asked which somehow none of the consulting aspirants/fans ever seem to be talking about (maybe I need to talk to more)
-What value has the company created for its client and for the world (maximizing profits vs causing mass layoffs)
-What is behind all the hype and arrogance?
- What role did the company have in some of the worst corporate decisions ever made (2008 recession for instance)
So, overall, the book helped me with exactly what I needed to know- "a complete picture of Mckinsey". It repeats itself a lot and could have been shorter.
September 30, 2022
Disclaimer: I am employed by McK.
Overall I found this book to be interesting and at times juicy in parts, but for much of the read it was very boring, repetitive corporate fluff. I had to stop reading it halfway through and read other things to get the motivation to come back and finish it.
Pros: Detailed history of the firm and its complex power structures, which is very useful as someone about to start working for them. Has interviews with ex McK partners and directors which I found to be intriguing. Deals with the many controversies that mckinsey has been tied to, and does its absolute best to present a balanced view, both internal and external.
Cons: For starters, The blurb for this book seriously overplays just how controversial/exciting the various controversies are. One egregious example is the continual references to the NHS assignment - the book builds it up as this complete disaster but all told McK's only real "crime" is they gave vague unhelpful advice that perhaps in some way contributed to the degradation of the UK's public health system. More generally, the book spends alot of time talking about corporate politics and things like setting up new offices in relatively uninteresting locations. Really does anyone enjoy corporate politics enough to spend their free time reading about someone else's?
All in all I feel the target audience for this kind of book is real small. If you plan on working at McK or any MBB then it's a great read for sure.
Overall I found this book to be interesting and at times juicy in parts, but for much of the read it was very boring, repetitive corporate fluff. I had to stop reading it halfway through and read other things to get the motivation to come back and finish it.
Pros: Detailed history of the firm and its complex power structures, which is very useful as someone about to start working for them. Has interviews with ex McK partners and directors which I found to be intriguing. Deals with the many controversies that mckinsey has been tied to, and does its absolute best to present a balanced view, both internal and external.
Cons: For starters, The blurb for this book seriously overplays just how controversial/exciting the various controversies are. One egregious example is the continual references to the NHS assignment - the book builds it up as this complete disaster but all told McK's only real "crime" is they gave vague unhelpful advice that perhaps in some way contributed to the degradation of the UK's public health system. More generally, the book spends alot of time talking about corporate politics and things like setting up new offices in relatively uninteresting locations. Really does anyone enjoy corporate politics enough to spend their free time reading about someone else's?
All in all I feel the target audience for this kind of book is real small. If you plan on working at McK or any MBB then it's a great read for sure.
July 13, 2017
Cuốn sách kể về McKinsey theo trình tự thời gian dưới thời các CEO của McKinsey, có kha khá thông tin về văn hóa, định hướng, tính thương mại cũng như những thăng trầm của một tổ chức có sức ảnh hưởng lớn trên thế giới. Hơn nữa, mình rất quan tâm tìm hiểu về nghề tư vấn quản trị nên cuốn sách cũng có những sức hút nhất định với mình.
Tuy nhiên, xét về văn phong cũng như cách dịch thì mình cho rằng cuốn sách chỉ xứng đáng 1 điểm. Mình đã phải rất rất cố gắng mới có thể hoàn thành cuốn sách. Gần như những phần cuối mình chỉ đọc các ý chính và lướt qua những đoạn mô tả quá dài dòng và tiếng Việt rất lủng củng. Có những đoạn mình cảm thấy như dịch giả dùng google translate từ tiếng Anh sang tiếng Việt nên dịch nghĩa từ, còn cú pháp thì rất lôi thôi, phải tự sắp xếp lại trong đầu một hồi mới hiểu được.
Lời khuyên là nếu ai muốn đọc cuốn này nên đọc bản tiếng Anh và cũng đừng kỳ vọng quá nhiều về nó.
Tuy nhiên, xét về văn phong cũng như cách dịch thì mình cho rằng cuốn sách chỉ xứng đáng 1 điểm. Mình đã phải rất rất cố gắng mới có thể hoàn thành cuốn sách. Gần như những phần cuối mình chỉ đọc các ý chính và lướt qua những đoạn mô tả quá dài dòng và tiếng Việt rất lủng củng. Có những đoạn mình cảm thấy như dịch giả dùng google translate từ tiếng Anh sang tiếng Việt nên dịch nghĩa từ, còn cú pháp thì rất lôi thôi, phải tự sắp xếp lại trong đầu một hồi mới hiểu được.
Lời khuyên là nếu ai muốn đọc cuốn này nên đọc bản tiếng Anh và cũng đừng kỳ vọng quá nhiều về nó.
May 29, 2020
Clearly the author has his opinions about The Firm. Fascinating info none the less.
July 19, 2022
understanding American business
I’ve always been a bit baffled by McKinsey and it’s competitors. Companies that seem to just make money by doling out advice but not actually doing any of the actual work. I guess running my own consulting firm that also does the work I was a bit jealous of it. But in this book the author goes to point out that a consulting company made up of young people making decisions, who have no skin in the game have actually created the negative, zero-sum business world that we currently live in. This includes the excess of the Enron, the financial crisis, GM, and many more have all been linked to McKinsey in some way.
Overall a good and detailed read, but it could have used a bit of cutting maybe 50
Pages or so.
I’ve always been a bit baffled by McKinsey and it’s competitors. Companies that seem to just make money by doling out advice but not actually doing any of the actual work. I guess running my own consulting firm that also does the work I was a bit jealous of it. But in this book the author goes to point out that a consulting company made up of young people making decisions, who have no skin in the game have actually created the negative, zero-sum business world that we currently live in. This includes the excess of the Enron, the financial crisis, GM, and many more have all been linked to McKinsey in some way.
Overall a good and detailed read, but it could have used a bit of cutting maybe 50
Pages or so.
September 22, 2019
This is a book about the most successful consulting firm in history--by an author who doesn't like consulting or consultants. He peppers snide comments and insults all throughout the book, like: "Despite the fact that only bad leaders need consultants, they were hired by..." and "We all know that consultants don't produce any value, but they tell their clients that change is what they offer..." Lost a star for that petty writing. The other star lost is because he very vague about certain aspects of the firm. He mentions a famous manual for staff from the first 40 years of their start up--but then doesn't tell us what was in it beyond vague comments. If it was that important, I'd love to hear at least a table of contents list. He mentions how the key to their perpetuation is a hiring partnership with Harvard for many decades--but doesn't talk about how they hired (criteria, methods, etc.) He says one of their unique features is a decentralized leadership method--but only explains how the main leader is selected and not how any other decisions are made (except one time where he derides them for letting people select their own projects in the 90's).
So as a consultant, I was able to wade through his personal angst and learn some interesting things about a truly controversial company. But I did have to filter through his frustrations. If you're a consultant and/or student of business history then it might be a good read for you. If not, probably not.
So as a consultant, I was able to wade through his personal angst and learn some interesting things about a truly controversial company. But I did have to filter through his frustrations. If you're a consultant and/or student of business history then it might be a good read for you. If not, probably not.
January 1, 2014
This book confirms many or my prior opinions and insights, that McKinsey is the Microsoft of today, too large, too overblown, and run by people while smart are out of touch with the realities of how business operates. Worse, some of its leadership have been convicted of illegal practices, and even though that number is small, others involved with Enron, HP, the economic crisis, and others, McKinsey side stepped responsibility by telling the world that, while they provide strategic advice they don't actually pull the trigger.
So, I'm not sure if I like it out of confirmation bias or what little new information I learned from it. A remarkable story nonetheless.
So, I'm not sure if I like it out of confirmation bias or what little new information I learned from it. A remarkable story nonetheless.
February 21, 2014
This was an interesting book, but it didn't seem well organized to me. McKinsey has such a long history that I think it would be difficult to write a detailed summary of the firm. There was much interesting information, but I feel like the author tried to cover too many small examples. Maybe this would be a better book for someone who is more familiar with events that occurred over the span of the book. There were lots of interesting facts, but it almost felt like too many.
October 6, 2013
I used to be able to count on one hand the number of books I give up on - now it takes two. This is a dry and uninteresting pile of generalities. I forced myself to get 1/2 in, waiting for it to get interesting. 3/5 of the way through it never got there and I through in the towel. Life is too short to waste time reading this book.
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