When McKinsey Comes to Town: The Hidden Influence of the World's Most Powerful Consulting Firm (Random House Large Print) - Softcover

Bogdanich, Walt; Forsythe, Michael

Softcover

ISBN 10: 0593663322 ISBN 13: 9780593663325

Verlag: Diversified Publishing, 2022

Inhaltsangabe

NEW YORK TIMES BESTSELLER • An explosive, deeply reported exposé of McKinsey & Company, the international consulting firm that advises corporations and governments, that highlights the often drastic impact of its work on employees and citizens around the world

"Meticulously reported, and ultimately devastating, this is an important book." —Patrick Radden Keefe, New York Times bestselling author of Empire of Pain and Say Nothing

McKinsey & Company is the most prestigious consulting company in the world, earning billions of dollars in fees from major corporations and governments who turn to it to maximize their profits and enhance efficiency. McKinsey's vaunted statement of values asserts that its role is to make the world a better place, and its reputation for excellence and discretion attracts top talent from universities around the world. But what does it actually do?

In When McKinsey Comes to Town, two prizewinning investigative journalists have written a portrait of the company sharply at odds with its public image. Often McKinsey's advice boils down to major cost-cutting, including layoffs and maintenance reductions, to drive up short-term profits, thereby boosting a company's stock price and the wealth of its executives who hire it, at the expense of workers and safety measures. McKinsey collects millions of dollars advising government agencies that also regulate McKinsey's corporate clients. And the firm frequently advises competitors in the same industries, but denies that this presents any conflict of interest.

In one telling example, McKinsey advised a Chinese engineering company allied with the communist government which constructed artificial islands, now used as staging grounds for the Chinese Navy—while at the same time taking tens of millions of dollars from the Pentagon, whose chief aim is to counter Chinese aggression.

Shielded by NDAs, McKinsey has escaped public scrutiny despite its role in advising tobacco and vaping companies, purveyors of opioids, repressive governments, and oil companies. McKinsey helped insurance companies' boost their profits by making it incredibly difficult for accident victims to get payments; worked its U.S. government contacts to let Wall Street firms evade scrutiny; enabled corruption in developing countries such as South Africa; undermined health-care programs in states across the country. And much more.

Bogdanich and Forsythe have penetrated the veil of secrecy surrounding McKinsey by conducting hundreds of interviews, obtaining tens of thousands of revelatory documents, and following rule #1 of investigative reporting: Follow the money.
When McKinsey Comes to Town is a landmark work of investigative reporting that amounts to a devastating portrait of a firm whose work has often made the world more unequal, more corrupt, and more dangerous.

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Über die Autorin bzw. den Autor

WALT BOGDANICH is an investigative reporter for The New York Times. He has been awarded three Pulitzer Prizes for his investigative journalism. He previously produced stories for “60 Minutes,” ABC News and The Wall Street Journal in New York and Washington. He has a B.A. in political science from the University of Wisconsin and a master’s degree in journalism from Ohio State University. He lives in Port Washington, NY.
 
MICHAEL FORSYTHE is an investigative reporter for The New York Times. At Bloomberg was part of a team that won the George Polk Award in 2013. Mr. Forsythe is a veteran of the U.S. Navy. He has a B.A. in international economics from Georgetown University and a Master’s degree in East Asian Studies from Harvard University. He lives in New York City.

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Chapter 1

Wealth Without Guilt

McKinsey’s Values

For the smartest, most accomplished college students, a job at McKinsey & Company can seem like a path to wealth and prestige as well as an opportunity to prove themselves by solving the business world’s toughest problems.

As a management consultancy, McKinsey has no peer, and acts like it. When it recruits each year, the firm might attract 200,000 applicants, hiring as little as 1 to 2 percent. A stint at McKinsey, even for a short time, is a lifelong passport to industry and government, thanks to the firm’s vast alumni network reaching around the world.

Other top companies dangle promises of riches and the status that comes with them. McKinsey offers that, but also something more—the opportunity for young recruits to use their talents for a higher purpose, to make the world a better place. “Change that matters,” McKinsey tells job candidates, a sales pitch of wealth without guilt. “We are a values-driven organization,” McKinsey insists.

By portraying itself as a company with a heart, not just a lust for profits, McKinsey appeals to younger, idealistic students concerned about issues like global warming, inequality, and racial justice. It is a potent sales pitch and a strong message to the future wolves of Wall Street that they need not apply. But the firm also offers something just as intoxicating: influence.

For the past century, McKinsey has methodically built its marquee consultancy by selling its philosophy of scientific management to the world’s best-known blue-chip companies. At one time or another most Fortune 500 companies have paid McKinsey for advice. So have more than a hundred government agencies around the world.

Because the firm won’t identify clients or disclose the advice it gives, Americans and, increasingly, people the world over are largely unaware of the profound influence McKinsey exerts over their lives, from the cost and quality of their medical care to the jobs that pay for their children’s education.

A search of records, including internal company documents, found that the firm has advised virtually every major pharmaceutical company—and their government regulators—along with health insurers, airlines, universities, museums, weapons makers, private equity firms, casinos, bookmakers, professional sports teams, and media companies, including The New York Times. Many of its consultants were just as comfortable advising Trump officials as they were Obama’s.

Operating in more than sixty-five countries, they can whisper in the ears of despots and elected leaders alike. In fifteen of those countries, the firm has advised the military, police and defense, and justice ministries. Its consultants have weighed in on the maintenance and support of “armored personnel carriers; minesweepers, destroyers and submarines.” Nations hire McKinsey to advise sovereign wealth funds worth more than $1 trillion. McKinsey’s own robust earnings make it possible for the firm to run a private hedge fund for senior partners, with large parts of its roughly $31.5 billion in assets under management concealed behind a tangle of shell companies on an island tax haven in the English Channel.

McKinsey’s reputation is enhanced by the success of its former consultants, including Tom Cotton, the conservative U.S. senator from Arkansas; Pete Buttigieg, U.S. secretary of transportation; Bobby Jindal, former governor of Louisiana; Sheryl Sandberg of Facebook; Lou Gerstner of IBM and American Express; and James P. Gorman of Morgan Stanley and Merrill Lynch. Outside the United States, McKinsey’s alumni have also reached exalted positions, including Kirill Dmitriev, head of Russia’s sovereign wealth fund; William Hague, Britain’s former foreign secretary; and the former Credit Suisse CEO Tidjane Thiam.

Although the firm is named after its founder, James O. McKinsey, its spiritual leader was Marvin Bower, who joined the consultancy in 1933, ushering in an era of professionalism patterned after the prestigious Cleveland law firm where he once worked. Brilliant but uncompromising, he defined how consultants should work and dress. He insisted that McKinsey call itself a firm, not a company; that it run a practice, not a business; and that client work be an engagement, not a job. According to the firm’s official history, “The very word commercial, when spoken about anyone at McKinsey, is akin to profanity,” one consultant said. Because of Bower’s principles—the most important being “client first”—the consultancy thrived.

A graduate of Harvard Law and Harvard Business School, Bower believed consultants are best recruited young and trained in-house because “it is easier and more effective to train outstanding people in their formative years.” He didn’t want consultants offering advice filtered through their prior business experience or, worse yet, their intuition.

Bower also developed the firm’s valuable ties to Harvard Business School by aggressively recruiting its prestigious Baker scholars, who earned academic honors and ranked in the top 5 percent of their graduating class. Duff McDonald, who has written deeply reported books about McKinsey and the Harvard Business School, found that as of 2010 roughly five hundred Harvard Business School graduates were working for McKinsey, more than its main recruiting rivals, Goldman Sachs, Google, and Microsoft.

The business school’s reputation grew as McKinsey hired more of its graduates and McKinsey gained exposure through the Harvard Business Review. Since 1959, the Review has given out the “McKinsey Awards” for the best “practical and groundbreaking management thinking” published in the magazine during the year.

If there was an award for squeezing the most out of clients, McKinsey might be the favorite to win it. A senior partner told young recruits that when he started at the firm, a McKinsey manager helped him by offering tips on building client relationships. “Wedge yourself in and spread like an amoeba,” he said. “Once in, you should spread yourself in the organization and do everything.” In other words, he said, act like “a Trojan horse.”

Although based in New York City, McKinsey operates through semiautonomous offices in cities around the world. If New York is the city that never sleeps, so it is for McKinsey, its technical staff ready at any hour to assist consultants in different time zones prepare their findings in the firm’s standard format: PowerPoint slides.

McKinsey’s sales pitch appealed to Rogé Karma, a Notre Dame graduate. He picked the firm because it emphasized the opportunity to improve people’s lives. “That’s not Goldman Sachs’s pitch. That’s not the ExxonMobil pitch,” he said. Karma, now a staff editor for the Ezra Klein podcast at The New York Times, took the long view. “By coming to McKinsey, you are going to learn a tool kit—a way of operating that will help you to be a change maker when you go out into the world. No matter what you want to do, no matter what impact you want to have, you are going to have this tool kit.”

One college graduate worked at Goldman before joining McKinsey, and he said the difference couldn’t be more stark. At Goldman, “there was never ever, ever an attempt to be anything other than what they were—‘We are the sharks and that’s why we are the best and everyone wants to work here because we are the sharks’—and that’s refreshing. No one was lying to themselves at night.”

McKinsey held itself out to be...

Details zur Ausgabe

• Verlag: Diversified Publishing
• Erscheinungsdatum: 2022
• Sprache: Englisch
• ISBN 10: 0593663322
• ISBN 13: 9780593663325
• Einband: Taschenbuch
• Anzahl der Seiten: 624
• Kontakt zum Hersteller: Nicht verfügbar
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