The Firm: The Story of McKinsey and Its Secret Influence on American Business
Page 34
31. Matthias Kipping, “Hollow from the Start? Image Professionalism in Management Consulting,” Current Sociology, volume 59, issue 4 (July 2011), 530–550.
32. McKenna, The World’s Newest Profession, 62.
33. Rakesh Khurana, From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession (Princeton: Princeton University Press, 2007), 92.
34. McKenna, The World’s Newest Profession, 60.
35. Stewart, The Management Myth, 59.
36. Neukom, McKinsey Memoirs, 34.
37. McKenna, The World’s Newest Profession, 48.
38. Smith, Seaman, and Witzel, A History of The Firm, 58.
39. Jack Sweeney, “The Last Lion: Marvin Bower and His Quest for Professional Independence,” Consulting Magazine, February/March 2003.
40. Wolf, Management and Consulting, 10.
41. Ibid., 11.
42. Neukom, McKinsey Memoirs, 14.
43. Roger Lowenstein, New York Times, December 28, 2003.
44. Nanda and Morrell, “McKinsey & Company: An Institution at a Crossroads.”
45. Marvin Bower, Memoirs (New York, Marvinstories, 2003), 44.
46. Bower, Perspective on McKinsey, 17.
47. Bower, Memoirs, 46.
48. Wolf, Management and Consulting, 11.
49. Bower, Perspective on McKinsey, 16.
50. Elizabeth Haas Edersheim, McKinsey’s Marvin Bower (Hoboken, NJ: John Wiley & Sons, 2004), 57.
51. Bower, Perspective on McKinsey, 32.
52. Ibid., 18.
53. Ibid., 34.
54. Sweeney, “The Last Lion.”
2. THE MAKING OF THE FIRM
1. James Gorman, interview by author, August 10, 2011.
2. Stuart Jeffries, “The Firm,” Guardian, February 21, 2003.
3. John Huey, “How McKinsey Does It,” Fortune, November 1, 1993.
4. Dick Bower, interview by author, April 5, 2011.
5. Christopher D. McKenna, The World’s Newest Profession: Management Consulting in the Twentieth Century (New York: Cambridge University Press, 2006), 202.
6. Ibid., 201.
7. Marvin Bower, The Will to Lead: Running a Business with a Network of Leaders (Boston: Harvard Business School Press, 1997), 51.
8. Ron Daniel, interview by author, December 7, 2010.
9. Hal Higdon, The Business Healers (New York: Random House, 1970), 230.
10. Ibid., 232.
11. Marvin Bower, Perspective on McKinsey (New York: McKinsey & Company, 1979), 192.
12. Ibid., 114.
13. Ibid., 14
14. George MacDonald Fraser, Flashman: A Novel (New York: Plume, 1984), 30.
15. Mo Cunniffe, interview by author, May 7, 2010.
16. Elizabeth Haas Edersheim, McKinsey’s Marvin Bower (Hoboken, NJ: John Wiley & Sons, 2004), 74.
17. Ibid., 71.
18. Harvard Business Study, “McKinsey and the Globalization of Consultancy,” July 7, 2009.
19. Investors Business Daily, November 10, 2000.
20. Doug Ayer, interview by author, May 7, 2010.
21. Bower, Perspective on McKinsey, 37.
22. McKinsey: A Scrapbook (McKinsey & Company, 1997), 19.
23. Walter Kiechel III, The Lords of Strategy (Boston: Harvard Business Press, 2010), 25.
24. Pankaj Ghemawat, “Competition and Business Strategy in Historical Perspective,” Business History Review, volume 76 (Spring 2002), 40.
25. Jack Sweeney, “The Last Lion: Marvin Bower and His Quest for Professional Independence,” Consulting Magazine, February/March 2003.
26. Ibid.
27. Robert A. Caro, The Power Broker (New York: Vintage Books, 1974), 315.
28. George David Smith, John T. Seaman Jr., and Morgan Witzel, A History of The Firm (New York: McKinsey & Company, 2010), 113.
3. THE AGE OF INFLUENCE
1. Dick Bower, interview by author, April 15, 2011.
2. Robert A. Caro, The Power Broker (New York: Vintage Books, 1974), 688.
3. Elizabeth Haas Edersheim, McKinsey’s Marvin Bower (Hoboken, NJ: John Wiley & Sons, 2004), 215.
4. Doug Ayer, interview by author, May 7, 2010.
5. John Micklethwait and Adrian Wooldridge, The Company: A Short History of a Revolutionary Idea (New York: Modern Library, 2003), 115.
6. Ibid., 117.
7. Rakesh Khurana, From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession (Princeton: Princeton University Press, 2007), 208.
8. Marvin Bower, Perspective on McKinsey (New York: McKinsey & Company, Inc., 1979), 120.
9. Edersheim, McKinsey’s Marvin Bower, 28.
10. Christopher D. McKenna, The World’s Newest Profession: Management Consulting in the Twentieth Century (New York: Cambridge University Press, 2006), 152.
11. William H. Whyte, The Organization Man (Philadelphia: University of Pennsylvania Press, 2002), 4.
12. Ibid., 276.
13. Khurana, From Higher Aims to Hired Hands, 200.
14. New York Times, November 30, 1996.
15. George David Smith, John T. Seaman Jr., and Morgan Witzel, A History of The Firm (New York: McKinsey & Company, 2010), 90.
16. Daniel Guttman and Barry Willner, The Shadow Government: The Government’s Multi-billion-dollar Giveaway of Its Decision-making Powers to Private Management Consultants, “Experts,” and Think Tanks (New York: Pantheon Books, 1976), 98.
17. Ibid.
18. Ibid.
19. McKinsey: A Scrapbook (McKinsey & Company, 1997), 26.
20. Guttman and Willner, The Shadow Government, 103.
21. McKenna, The World’s Newest Profession, 98, 99.
22. Ibid., 105.
23. Ibid., 108.
24. Guttman and Willner, The Shadow Government, 111.
25. Ibid., 96.
26. Ibid., 275.
27. New York Times, July 3, 1970.
28. Carter Bales, interview by author, April 20, 2011.
29. Bower, Perspective on McKinsey, 72.
30. McKenna, The World’s Newest Profession, 154.
31. Edersheim, McKinsey’s Marvin Bower, 95.
32. Jon Katzenbach, interview by author, May 5, 2010.
33. Alfred D. Chandler Jr., Scale and Scope: The Dynamics of Industrial Capitalism (Boston: Harvard University Press, 1994), 613.
34. Bower, Perspective on McKinsey, 90.
35. Ibid., 95.
36. Ibid., 192.
37. Ibid.
38. Matthias Kipping, “American Management Consulting Companies in Western Europe, 1920 to 1990: Products, Reputation, and Relationships,” Business History Review, volume 73 (Summer 1999), 190–220.
39. Hal Higdon, The Business Healers (New York: Random House, 1970), 15.
40. Mike Allen, interview by author, May 24, 2010.
41. McKenna, The World’s Newest Profession, 174.
42. Doug Ayer, interview by author, May 7, 2010.
43. Stephen Aris, “Super managers.” Sunday Times, September 1, 1968.
44. Edersheim, McKinsey’s Marvin Bower, 106.
45. McKenna, The World’s Newest Profession, 181.
46. Micklethwait and Wooldridge, The Company, 171.
47. Jean-Jacques Servan-Schreiber, The American Challenge (New York: Atheneum, 1968).
48. Walter Kiechel III, The Lords of Strategy (Boston: Harvard Business Press, 2010), 25.
49. Michael Useem, The Leadership Moment: Nine True Stories of Triumph and Disaster and Their Lessons for Us All (New York: Crown Books, 1999), 213.
50. Logan Cheek, interview by author, November 2011.
51. Kipping, “American Management Consulting Companies.”
52. McKinsey: A Scrapbook, 21.
53. Smith, Seaman, and Witzel, A History of The Firm, 96.
54. Edersheim, McKinsey’s Marvin Bower, 95.
> 55. Bethany McLean and Peter Elkind, The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron (New York: Portfolio, 2003), 71.
56. James Kwak, interview by author, September 10, 2010.
57. Higdon, The Business Healers, 134.
58. Matthias Kipping, “Hollow from the Start? Image Professionalism in Management Consulting,” Current Sociology, volume 59, issue 4 (July 2011), 530–550.
59. James O’Shea and Charles Madigan, Dangerous Company: Management Consultants and the Businesses They Save and Ruin (New York: Penguin Books, 1997), 283.
60. Matthew Stewart, The Management Myth: Why the Experts Keep Getting It Wrong (New York: W. W. Norton, 2009), 4.
61. Ibid., 125.
62. Ibid., 143.
63. Martin Kihn, House of Lies: How Management Consultants Steal Your Watch and Then Tell You the Time (New York: Warner Business Books, 2005), 11.
64. Lewis Pinault, Consulting Demons: Inside the Unscrupulous World of Global Corporate Consulting (New York: HarperBusiness, 2000), 13.
65. John Huey, Fortune, November 1, 1993.
66. Christopher McKenna, interview by author, 2009.
67. Higdon, The Business Healers, 181.
68. McKenna, The World’s Newest Profession, 157.
69. Gordon Perchthold and Jenny Sutton, Extract Value from Consultants (Austin, TX: Greenleaf Book Group Press, 2010), 37.
70. Stewart, The Management Myth, 153.
71. Curt Schleler, “Consulting Innovator Marvin Bower: His Vision Made McKinsey & Co. a Pioneer,” Investors Business Daily, November 9, 2000.
72. McKinsey: A Scrapbook, 41.
73. Walter Guzzardi Jr., “Consultants: The Men Who Came to Dinner,” Fortune, February 1965.
74. Chandler, Scale and Scope, 622.
75. McKenna, The World’s Newest Profession, 8.
76. Higdon, The Business Healers, 176.
77. Ibid., 84.
78. Ibid., 181.
79. Smith, Seaman, and Witzel, A History of The Firm, 185.
80. Jack Beatty, Colossus: How the Corporation Changed America (New York: Broadway Books, 2001), 267.
81. Bower, Perspective on McKinsey, 112.
82. Smith, Seaman, and Witzel, A History of The Firm, 114.
83. Stephen Aris, “Supermanagers,” Sunday Times, September 1, 1968.
4. THE DECADE OF DOUBT
1. Alfred D. Chandler Jr., Strategy and Structure: Chapters in the History of the American Industrial Enterprise (Cambridge, MA: MIT Press, 1962), introduction.
2. Rakesh Khurana, From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession (Princeton: Princeton University Press, 2007), 208.
3. John Micklethwait and Adrian Wooldridge, The Company: A Short History of a Revolutionary Idea (New York: Modern Library, 2003), 121.
4. Chandler, Strategy and Structure, introduction.
5. “The New Shape of Management Consulting,” BusinessWeek, May 21, 1979.
6. Thomas K. McGraw, American Business, 1920–2000: How It Worked (Wheeling, IL: Harlan Davidson, 2000), 157.
7. Christopher A. Bartlett, “McKinsey & Co.: Managing Knowledge and Learning,” Harvard Business School, January 4, 2000.
8. McKinsey: A Scrapbook (New York: McKinsey & Company, 1997), 49.
9. Michael C. Jensen, “McKinsey & Co.: Big Brother to Big Business,” New York Times, May 30, 1971.
10. Nancy Killefer, interview by author, July 6, 2011.
11. McKinsey: A Scrapbook, 47.
12. David J. Parker, “The Management Consulting Industry in Germany,” Working Paper, Alfred P. Sloan School of Management, August 1974, 5.
13. Geoffrey Jones and Alexis Lefort, “McKinsey and the Globalization of Consultancy,” Harvard Business School, July 7, 2009.
14. John Cable and Manfred J. Dirrheimer, “Hierarchies and Markets—An Empirical Test of the Multidivisional Hypothesis in West Germany,” International Journal of Industrial Organization, volume 1 (March 1983), 43–62.
15. George David Smith, John T. Seaman Jr., and Morgan Witzel, A History of The Firm (New York: McKinsey & Company, 2010), 182.
16. Logan Cheek, interview by author, December 12, 2011.
17. Rod Carnegie, interview by author, October 4, 2012.
18. Walter Kiechel III, The Lords of Strategy (Boston: Harvard Business Press, 2010), 40.
19. Stuart Crainer, The Tom Peters Phenomenon: Corporate Man to Corporate Skunk (Oxford: Capstone Publishing Limited, 1997), 11.
20. Pankaj Ghemawat, “Competition and Business Strategy in Historical Perspective,” Business History Review, volume 76 (Spring 2002), 45.
21. John Byrne, BusinessWeek, June 23, 1986.
22. Adrian Wooldridge, “Big Think in the Boardroom: How Business Moved from Affable Amateurism to Specialized, Intellectualized ‘Models’ and Expertise,” Wall Street Journal, March 10, 2010.
23. Kiechel, The Lords of Strategy, 65.
24. Matthew Stewart, The Management Myth: Why the Experts Keep Getting It Wrong (New York: W. W. Norton, 2009), 194.
25. Henry Mintzberg, interview by author, April 7, 2010.
26. Ghemawat, “Competition and Business Strategy,” 47.
27. Mike Allen, interview by author, May 24, 2010.
28. Kiechel, The Lords of Strategy, 72.
29. McKinsey: A Scrapbook, 55.
30. Smith, Seaman, and Witzel, A History of The Firm, 178.
31. Elizabeth Haas Edersheim, McKinsey’s Marvin Bower (Hoboken, NJ: John Wiley & Sons, 2004), 113.
32. Consulting News, February 1973.
33. McGraw, American Business, 164.
34. Peter von Braun, interview by author, May 7, 2010.
35. Ed Massey, interview by author, May 7, 2010.
36. BusinessWeek, November 18, 1967.
37. Smith, Seaman, and Witzel, A History of The Firm, 166.
38. Christopher Bartlett, “McKinsey & Company: Managing Knowledge and Learning,” Harvard Business School, January 4, 2000.
39. Smith, Seaman, and Witzel, A History of The Firm, 311.
40. Hal Higdon, The Business Healers (New York: Random House, 1970), 188.
41. Ashish Nanda and Kelley Morrell, “McKinsey & Company: An Institution at a Crossroads,” Harvard Business School, December 4, 2002.
42. Frank Mattern, interview by author, July 6, 2011.
43. Partha Bose, interview by author, December 12, 2011.
44. Khurana, From Higher Aims to Hired Hands, 324.
45. Ibid., 2.
46. Al McDonald, interview by author, February 24, 2011.
47. Month by Month, “Life After Managing Director—Al McDonald: Dancing Between the Elephant’s Toes” (McKinsey & Company), January/February 1998.
48. Ibid.
49. Al McDonald, interview by author, February 24, 2011.
50. Peter von Braun, interview by author, May 7, 2010.
51. Month by Month, “Life After Managing Director—Al McDonald.”
52. Smith, Seaman, and Witzel, A History of The Firm, 214.
5. A RETURN TO FORM
1. Month by Month, “Life After Managing Director—Still Here. And Still Busy” (McKinsey & Company), July/August 1996.
2. John Byrne, BusinessWeek, June 23, 1986.
3. George David Smith, John T. Seaman Jr., and Morgan Witzel, A History of The Firm (New York: McKinsey & Company, 2010), 217.
4. Ibid., 225.
5. John A. Byrne, “Inside McKinsey,” BusinessWeek, July 8, 2002.
6. Dana Milbank, “Critics Have Advice for McKinsey,” Globe and Mail, October 12, 1993.
7. Partha Bose, interview by author, December 12, 2011.
8. BusinessWeek, May 21, 1979.
9. Matthias Kipping, interview by author, December 2, 2010.
10. Walter Kiechel III, The Lords of Strategy (Boston: Harvard Business Press, 2010), 104.
11. Ibid., 69.
12. Fred Gluck, interview by author, January 27, 2011.
13. Clay Deutsch, interview by author, April 2011.
14. Kiechel, The Lords of Strategy, 257.
15. Ashish Nanda and Kelley Morrell, “McKinsey & Company: An Institution at a Crossroads,” Harvard Business School, December 4, 2002.
16. Partha Bose, interview by author, December 12, 2011.
17. Tom Peters, interview by author, July 27, 2010.
18. Bob Waterman, interview by author, 2010.
19. Stuart Crainer, The Tom Peters Phenomenon: Corporate Man to Corporate Skunk (Oxford: Capstone Publishing Limited, 1997), 12.
20. Ibid., 28.
21. Ibid., 27.
22. Tom Peters, interview by author, 2010.
23. Crainer, The Tom Peters Phenomenon, 41.
24. John Micklethwait and Adrian Wooldridge, The Witch Doctors: Making Sense of the Management Gurus (New York: Times Books, 1996), 46.
25. Tom Peters, interview by author, 2010.
26. Matthew Stewart, The Management Myth: Why the Experts Keep Getting It Wrong (New York: W. W. Norton, 2009), 247.
27. Bob Waterman, interview by author, 2010.
28. Ibid.
29. Tom Peters, interview by author, 2010.
30. Ibid.
31. McKinsey partner, interview by author, 2011.
32. Bob Waterman, interview by author, 2010.
33. John Huey, Fortune, November 1, 1993.
34. Bill Matassoni, interview by author, 2010.
35. Logan Cheek, interview by author, November 2011.
36. McKinsey: A Scrapbook (New York: McKinsey & Company, 1997), 68.
37. Smith, Seaman, and Witzel, A History of The Firm, 256.
38. Ian Davis, interview by author, June 16, 2011.
39. Smith, Seaman, and Witzel, A History of The Firm, 256.
40. Kiechel, The Lords of Strategy, 257.
41. Frank Mattern, interview by author, July 6, 2011.
42. Byrne, BusinessWeek, June 23, 1986.
43. Bill Matassoni, interview by author, September 3, 2010.
44. Smith, Seaman, and Witzel, A History of The Firm, 263.
45. Partha Bose, interview by author, December 12, 2011.
46. http://www.kohmae.com/book/index_e.html.
47. John Merwin, “We Don’t Learn from Our Clients, We Learn from Each Other,” Forbes, October 19, 1987.
48. Byrne, BusinessWeek, June 23, 1986.
49. Merwin, “We Don’t Learn.”
50. George Feiger, interview by author, January 9, 2012.