51. Crainer, The Tom Peters Phenomenon, 77.
52. Bill Matassoni, interview by author, September 3, 2010.
53. Gordon Perchthold and Jenny Sutton, Extract Value from Consultants (Austin, TX: Greenleaf Book Group Press, 2010), 51.
54. Jim Coulter, interview by author, 2011.
55. Robert Dell, interview by author, 2011.
56. John Huey, Fortune, November 1, 1993.
57. Byrne, BusinessWeek, June 23, 1986.
58. Huey, Fortune, November 1, 1993.
6. THE CRUCIAL QUESTION: ARE THEY WORTH IT OR NOT?
1. Stuart Crainer, The Tom Peters Phenomenon: Corporate Man to Corporate Skunk (Oxford: Capstone Publishing Limited, 1997), 167.
2. Dana Milbank, “Critics Have Advice for McKinsey,” Globe and Mail, October 12, 1993.
3. Frank Cahouet, interview by author, August 30, 2010.
4. McKinsey: A Scrapbook (New York: McKinsey & Company, 1997), 67.
5. Ibid.
6. Matthew Stewart, The Management Myth: Why the Experts Keep Getting It Wrong (New York: W. W. Norton, 2009), 70.
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), 326.
8. Martin Kihn, House of Lies: How Management Consultants Steal Your Watch and Then Tell You the Time (New York: Warner Business Books, 2005), 38.
9. Hal Higdon, The Business Healers (New York: Random House, 1970), 111.
10. James P. McCollom, The Continental Affair: The Rise & Fall of the Continental Illinois Bank (New York: Dodd, Mead, 1987), 231.
11. David Craig, Rip-Off! The Scandalous Inside Story of the Management Consulting Money Machine (London: Original Book Company, 2005), 170.
12. Ibid.
13. Michael Lanning, interview by author, April 27, 2010.
14. Tom Steiner, interview by author, 2010.
15. Milbank, “Critics Have Advice for McKinsey.”
16. Maryann Keller, interview by author, 2009.
17. John Huey, Fortune, November 1, 1993.
18. Stewart, The Management Myth, 181.
19. John Merwin, “We Don’t Learn from Our Clients, We Learn from Each Other,” Forbes, October 19, 1987.
20. Alan Kantrow, interview by author, May 4, 2010.
21. Merwin, “We Don’t Learn.”
22. Stephen Aris, “Supermanagers,” Sunday Times, September 1, 1968.
23. John Byrne, BusinessWeek, June 23, 1986.
24. Huey, Fortune, November 1, 1993.
25. Larry Kanarek, interview by author, 2010.
26. Merwin, “We Don’t Learn.”
27. Edwin Diamond, “News by the Numbers,” New York, February 25, 1987.
28. Higdon, The Business Healers, 85.
29. Merwin, “We Don’t Learn.”
30. Lewis Pinault, Consulting Demons: Inside the Unscrupulous World of Global Corporate Consulting (New York: HarperBusiness, 2000), 47.
31. Fred Sturdivant, interview by author, April 22, 2010.
7. REVENGE OF THE NERDS
1. Walter Kiechel III, The Lords of Strategy (Boston: Harvard Business Press, 2010), 95.
2. Fred Gluck, interview by author, January 2011.
3. Ibid.
4. Rod Carnegie, interview by author, October 4, 2012.
5. Fred Gluck, interview by author, January 2011.
6. Month by Month, “Life After Managing Director—Still Here. And Still Busy” (McKinsey & Company), July/August 1996.
7. James Gorman, interview by author, August 10, 2011.
8. James O’Shea and Charles Madigan, Dangerous Company: Management Consultants and the Businesses They Save and Ruin (New York: Penguin Books, 1997), 6.
9. John A. Byrne, “What’s a Guy Like This Doing at McKinsey’s Helm?” BusinessWeek, June 13, 1988.
10. Nancy Killefer, interview by author, July 6, 2011.
11. Alison Leigh Cowan, “McKinsey May Buy Consultants,” New York Times, October 2, 1989.
12. John A. Byrne, “The McKinsey Mystique,” BusinessWeek, September 20, 1993.
13. Frank Mattern, interview by author, July 6, 2011.
14. Ibid.
15. Hal Higdon, The Business Healers (New York: Random House, 1970), 279.
16. Byrne, “The McKinsey Mystique.”
17. John Huey, Fortune, November 1, 1993.
18. Fred Gluck, interview by author, January 2011.
19. Matthew Stewart, The Management Myth: Why the Experts Keep Getting It Wrong (New York: W. W. Norton, 2009), 171.
20. Huey, Fortune, November 1, 1993
21. John A. Byrne, “Sexual Harassment at McKinsey?” BusinessWeek, December 9, 1996.
22. Byrne, “The McKinsey Mystique.”
23. Huey, Fortune, November 1, 1993.
24. Jon Katzenbach, interview by author, May 5, 2010.
25. McKinsey: A Scrapbook (New York: McKinsey & Company, 1997), 76.
26. Stefan Matzinger, interview by author, February 5, 2011.
27. Byrne, “The McKinsey Mystique.”
28. John Micklethwait and Adrian Wooldridge, The Witch Doctors: Making Sense of the Management Gurus (New York: Times Books, 1996), 32.
29. Kiechel, The Lords of Strategy, 256.
30. Frank Mattern, interview by author, July 6, 2011.
31. Fred Gluck, interview by author, January 2011.
32. Clay Deutsch, interview by author, March 15, 2011.
33. Kate Linebaugh, “The New GE Way: Go Deep, Not Wide,” Wall Street Journal, March 6, 2012.
34. Huey, Fortune, November 1, 1993.
35. McKinsey pamphlet, “A Career in Consulting.”
36. Fred Gluck, interview by author, January 2011.
37. Bill Matassoni, interview by author, September 3, 2010.
38. Alan Kantrow, interview by author, May 4, 2010.
39. Tom Steiner, interview by author, October 28, 2010.
40. Partha Bose, interview by author, December 12, 2011.
41. Jay W. Lorsch and Katharina Pick, “McKinsey & Co.,” Harvard Business School Case 402-014, August 16, 2001.
42. Diana Farrell, interview by author, 2011.
43. Micklethwait and Wooldridge, The Witch Doctors, 54.
44. http://www.planetizen.com/node/20477.
45. http://www.montecitojournal.net/archive/12/15/220/.
8. THE MONEY GRAB
1. John A. Byrne, “Inside McKinsey,” BusinessWeek, July 8, 2002.
2. John Micklethwait and Adrian Wooldridge, The Company: A Short History of a Revolutionary Idea (New York: Modern Library, 2003), 129.
3. John Byrne, “The McKinsey Mystique,” BusinessWeek, September 20, 1993.
4. Ronald E. Yates, “ ‘The Firm’ Myths Not So Firm,” Chicago Tribune, July 10, 1994.
5. Ibid.
6. Stuart Jeffries, “The Firm,” Guardian, February 21, 2003.
7. Jim Fisher, interview by author, March 19, 2010.
8. James O’Shea and Charles Madigan, “The Firm’s Grip,” Sunday Times, September 7, 1997.
9. Jim Fisher, interview by author, March 19, 2010.
10. George Feiger, interview by author, January 9, 2012.
11. Gordon Orr, interview by author, June 20, 2011.
12. Ron Daniel, interview by author, December 17, 2010.
13. Partha Bose, interview by author, December 12, 2011.
14. Bill Cohan, interview by author, October 21, 2010.
15. Michelle Celarier, “The Lowdown on McKinsey,” Euromoney, July 1996.
16. Christopher D. McKenna, The World’s Newest Profession: Management Consulting in the Twentieth Century (New York: Cambridge University Press, 2006), 3.
17. Ashish Nanda and Kelley Morrell, “McKinsey & Company: An Institution at a Crossroads,” Harvard Business School, December 4, 2002.
18. Walter Kiechel III, The Lords of Strategy (Boston: Harvard Business Press, 2
010), 48.
9. BAD ADVICE
1. Manjeet Kripalani, “India: The GE and McKinsey Club,” BusinessWeek, February 23, 2006.
2. Ashish Nanda and Kelley Morrell, “McKinsey & Company: An Institution at a Crossroads,” Harvard Business School, December 4, 2002.
3. Tom Peters, interview by author, July 27, 2010.
4. Bethany McLean and Peter Elkind, The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron (New York: Portfolio, 2003), 31.
5. Kurt Eichenwald, Conspiracy of Fools: A True Story (New York: Broadway Books, 2005), 26.
6. Esther Maier, “Consulting Firms’ Impact on Performance: A Case Study of Enron and McKinsey” (Independent Study, University of Western Ontario), April 29, 2007.
7. McLean and Elkind, The Smartest Guys in the Room, 31.
8. Ibid., 35.
9. Eichenwald, Conspiracy of Fools, 52.
10. McLean and Elkind, The Smartest Guys in the Room, xx.
11. Ibid., 28.
12. Michelle Celarier, “The Lowdown on McKinsey,” Euromoney, July 1996.
13. Wendy Zellner, “Online Extra: Q&A with Enron’s Skilling,” BusinessWeek.com, February 12, 2001.
14. http://www.justice.gov/enron/exhibit/04-17/BBC-0001/OCR/EXH059-00383.TXT.
15. John A. Byrne, “Inside McKinsey,” BusinessWeek, July 8, 2002.
16. Ibid.
17. Maier, “A Case Study of Enron and McKinsey.”
18. McLean and Elkind, The Smartest Guys in the Room, 295.
19. Andrew Billen, “From Man Management to Mad Management,” Times, March 9, 2009.
20. McLean and Elkind, The Smartest Guys in the Room, 119.
21. Byrne, “Inside McKinsey.”
22. Ibid.
23. Maier, “A Case Study of Enron and McKinsey.”
24. Ibid.
25. Byrne, “Inside McKinsey.”
26. Alex Grey, “Challenges to the Reputation of Consulting Firm: A Case Study of the Fallout from the Enron Demise” (Independent Study, University of Western Ontario), May 5, 2008.
27. Maier, “A Case Study of Enron and McKinsey.”
28. Byrne, “Inside McKinsey.”
29. Grey, “A Case Study of the Fallout from the Enron Demise.”
30. Byrne, “Inside McKinsey.”
31. Grey, “A Case Study of the Fallout from the Enron Demise.”
32. Fiona Czerniawska, “Consulting on the Brink: The Implications of Enron for the Consulting Industry,” Arkimeda (2002), 5.
33. Lewis Pinault, Consulting Demons: Inside the Unscrupulous World of Global Corporate Consulting (New York: HarperBusiness, 2000), 230.
34. Lars Engwall, “Bridge, Poker and Banking,” Department of Business Studies, Uppsala University, 1995.
35. http://www.nakedcapitalism.com/2011/03/McKinsey-the-insider-trading-scandal-and-the-problems-with-consulting.html.
36. Byrne, “Inside McKinsey.”
37. Stewart Hamilton and Alicia Micklethwait, Greed and Corporate Failure (Hampshire, England: Palgrave Macmillan, 2006), 118.
38. Ibid.
39. Ian Davis, interview by author, June 16, 2011.
40. George David Smith, John T. Seaman Jr., and Morgan Witzel, A History of The Firm (New York: McKinsey & Company, 2010), 419.
41. David Berardinelli, From Good Hands to Boxing Gloves: The Dark Side of Insurance (Portland, OR: Trial Guides, 2008), 31.
42. David Dietz and Darrell Preston, “The Insurance Hoax,” Bloomberg Markets, September 2007.
43. James O’Shea and Charles Madigan, “The Firm’s Grip,” Sunday Times, September 7, 1997.
44. John Byrne, BusinessWeek, August 25, 1997.
45. Nicholas Lemann, “The Kids in the Conference Room,” New Yorker, October 18, 1999.
46. Malcolm Gladwell, “The Talent Myth,” New Yorker, July 20, 2002.
47. Ibid.
48. John Micklethwait and Adrian Wooldridge, The Company: A Short History of a Revolutionary Idea (New York: Modern Library, 2003), 144.
49. Thomas K. McGraw, American Business, 1920–2000: How It Worked (Wheeling, IL: Harlan Davidson, 2000), 36.
50. Nanda and Morrell, “McKinsey & Company: An Institution at a Crossroads.”
51. Byrne, “Inside McKinsey.”
52. Ibid.
53. Ibid.
54. Chuck Neul, interview by author, April 13, 2010.
55. Byrne, “Inside McKinsey.”
56. Ibid.
57. Nanda and Morrell, “McKinsey & Company: An Institution at a Crossroads.”
58. Heather Tomlinson, “After Enron, McKinsey Gets Call from the MoD,” Independent, July 28, 2002.
59. Dick Bower, interview by author, April 15, 2011.
10. RETRENCHMENT
1. “McKinsey’s Election Battle,” Economist, February 27, 2003.
2. Ian Davis, interview by author, June 17, 2010.
3. Juan Hoyos, interview by author, March 17, 2011.
4. Carter Bales, interview by author, April 20, 2010.
5. Michelle Jarrard, interview by author, January 25, 2011.
6. “80 Layoffs at Madison Square Garden,” New York Times, February 7, 2004.
7. Richard Milne, “ ‘Locusts’ of Private Equity Help Grohe,” Financial Times, June 5, 2008.
8. Steven Greenhouse and Michael Barbaro, “Wal-Mart Memo Suggests Ways to Cut Employee Benefit Costs,” New York Times, October 26, 2005.
9. Ann Zimmerman and Gary McWilliams, “Inside Wal-Mart’s ‘Threat Research’ Operation,” Wall Street Journal, April 4, 2007.
10. New York Observer, August 11, 2009.
11. Dominic Casserley, interview by author, January 14, 2011.
12. Nat Ives, “Conde Nast’s Townsend on Why Gourmet Was Shut Down,” Ad Age, October 5, 2009.
13. Dirk Smillie, “McKinsey Comes to the House of Murdoch,” Forbes.com, November 13, 2009.
14. Ibid.
15. Amy Chozick, “Helping Hand for a Print Empire,” New York Times, July 30, 2012.
16. Lucia Moses, “McKinsey’s Back at Time Inc.,” AdWeek, October 10, 2012.
17. Del Jones, “Some Firms’ Fertile Soil Grows Crop of Future CEOs,” USA Today, January 9, 2008.
18. Andrew Hill, “Inside McKinsey,” FT Magazine, November 25, 2011.
19. Nancy Killefer, interview by author, July 6, 2011.
20. Duff McDonald, “The Answer Men,” New York Magazine, July 26, 2009.
21. “Move Over, Goldman: It Is McKinsey’s Turn to Try to Sort Out Uncle Sam,” Economist, January 13, 2009.
22. Ibid.
23. “The Tale of Mr. Jackson: The Public Sector Has Had Its Fill of Management Consultants,” Economist, January 23, 2010.
24. Gregg Carlstrom, “Report: What Measuring Productivity Could Yield,” Federal Times, July 20, 2009.
25. http://www.McKinsey.com/Client_Service/Public_Sector.aspx#Defense_and_Security.
26. David Rose, “The Firm That Hijacked the NHS,” Daily Mail, February 12, 2012.
27. Walter Kiechel III, The Lords of Strategy (Boston: Harvard Business Press, 2010), 304.
28. Wall Street Journal, September 29, 1997.
29. Kiechel, The Lords of Strategy, 306.
30. Andrew Billen, “Goodbye to Glib Gurus and Their Gobbledegook,” Sunday Times, March 9, 2009.
31. Kevin Mellyn, Financial Market Meltdown (Santa Barbara, CA: Praeger, 2009), 71.
32. Kevin Mellyn, Broken Markets (New York: Apress, 2012), 153.
33. Mellyn, Financial Market Meltdown, 68.
34. http://www.nakedcapitalism.com/2009/05/guest-post-incredibly-uneven-recovery.html.
35. Diana Farrell, interview by author, 2011.
36. Steve Lohr, “GE Goes with What It Knows: Making Stuff,” New York Times, December 4, 2010.
37. Michelle Celarier, “The Lowdown on McKinsey,” Euromoney, July 1996.
38. Francois Bouvard, Thomas Fohrmann, and Nick Lovegrove, “The Case for Government Reform Now,” McKins
ey Quarterly, June 2009.
39. http://poetsandquants.com/2011/11/16/McKinsey-doubles-mba-hires-at-duke-haas/.
40. Jason Busch, “McKinsey Caught Up in China Procurement Bribe Scandal,” Spend Matters, January 22, 2007.
41. Christine Seib, “Now Even Management Consultants Are Feeling the Squeeze,” Times (London), February 19, 2009.
11. BREAKING THE COMPACT
1. http://www.glassdoor.com/Best-Places-to-Work-LST_KQ0,19.htm.
2. Gordon Pittso, “Dominic Barton’s Global Challenge,” Globe and Mail, August 17, 2009.
3. Dominic Barton, interview by author, June 23, 2011.
4. Dominic Barton, “Capitalism for the Long-Term,” Harvard Business Review, March 2011.
5. Frank Mattern, interview by author, July 6, 2011.
6. Dana Milbank, “Critics Have Advice for McKinsey,” Globe and Mail, October 12, 1993.
7. John Merwin, Forbes, October 19, 1987.
8. John A. Byrne, BusinessWeek, September 20, 1993.
9. Lou Gerstner, Who Says Elephants Can’t Dance? How I Turned Around IBM (New York: HarperCollins, 2002), 3.
10. Bill Matassoni, interview by author, 2010.
11. Michelle Jarrard, interview by author, January 25, 2011.
12. Alistair Osborne, “Prudential’s McKinsey Bill Annoys Investors,” Telegraph, June 6, 2010.
13. Tom Peters, interview by author, July 27, 2010.
14. Ian Davis, interview by author, June 16, 2011.
15. Kunal N. Talgeri, “The McKinsey Way,” Outlook Business, May 16, 2009.
16. Brooke Masters, James Fontanella-Khan, and Justin Baer, “McKinsey Partner’s Arrest Casts Shadow,” Financial Times, October 22, 2009.
17. http://www.forbes.com/lists/2011/21/private-companies-11_McKinsey-Company_IPPW.html.
18. Duff McDonald, “Rajat Gupta: Touched by Scandal,” Fortune, October 1, 2010.
19. Ibid.
20. http://friendsofrajat.com/read-the-open-letter/.
21. http://dealbook.nytimes.com/2012/04/19/insider-trading-investigation-ensnares-goldman-sachs-executive/?nl=business&emc=edit_dlbkam_20120420.
22. Suzanna Andrews, “How Rajat Gupta Came Undone,” BusinessWeek, May 19, 2011.
23. Ian Davis, interview by author, June 6, 2011.
24. Suketu Mehta, “The Outsider,” Newsweek, October 23, 2011.
25. Peter Lattman and Azam Ahmed, “Rajat Gupta Convicted of Insider Trading,” New York Times, June 15, 2012.
26. Michelle Jarrard, interview by author, January 25, 2011.
The Firm: The Story of McKinsey and Its Secret Influence on American Business Page 35