The Firm: The Story of McKinsey and Its Secret Influence on American Business

Home > Other > The Firm: The Story of McKinsey and Its Secret Influence on American Business > Page 37
The Firm: The Story of McKinsey and Its Secret Influence on American Business Page 37

by Duff McDonald


  Cisco, 264

  Citigroup, 42, 91–92, 118, 145, 165, 176, 179, 191, 230, 232, 236, 248, 286, 327

  civil rights movement, 106

  Clayton Act (1914), 18

  Clayton Dubilier, 232

  Clee, Gil, 74, 75, 94, 100, 101, 102, 120

  clients: British, 74–78

  confidentiality and, 57–58, 188, 190, 279

  conflict of interest concerns and, 90–92

  crediting and blame of, 58

  decline in number of, 110

  dissatisfaction of, 107–8, 177–82

  and downsizing as best product of McKinsey, 278–79

  early McKinsey, 24, 28–29

  economy in 1970s and, 103–4

  and Enron collapse, 247

  equity stakes with, 234, 235–36, 265–66

  and growth/expansion of McKinsey, 52–53, 64, 73, 102–3

  Gupta case reaction of, 322–23

  and hiring McKinsey just to prove a point, 187–90

  and Kumar as inside trader, 307–10, 322–23

  and link of pay to client performance, 266

  long-term relationship with, 136–37, 185, 333

  McKinsey acceptance of, 266

  McKinsey alumni as, 84, 303

  McKinsey arrogance and, 207

  McKinsey briefs for, 116

  and McKinsey culture/values, 275, 331, 333

  McKinsey effects on, 5–6, 173, 174–77, 332–34

  McKinsey fees and, 204

  and McKinsey in the future, 326, 330, 335

  McKinsey as scapegoat for, 8, 96, 107, 117, 189, 248

  McKinsey’s personal relationships with, 333

  McKinsey’s prestige, 225–26, 235

  number of McKinsey, 96, 136–67

  packaged ideas for, 109

  and popularity of McKinsey, 270

  presentations/reports to, 122–23

  quality of, 266

  repeat, 190, 191

  and role of consultant in client-consultant relationship, 9–10, 45, 58

  satisfied, 174–77

  and self-perpetuating sell of consultants, 92

  surprises for, 85–86

  and telling clients uncomfortable truths, 230

  as top rungs of management, 63–64, 234

  “transformational relationships” with, 6, 136–37, 180, 211, 326

  trust as basis of relationship with, 308, 325, 329

  turning down, 58–59, 108, 188. See also specific client or managing director

  Clinton, Bill, 169, 260, 282, 284, 311

  Clinton, Chelsea, 260

  Cluett-Peabody, 53

  Coca-Cola, 333

  Cohan, William, 231

  Cohen, Sir Ronald, 232, 305

  Colgate, 64

  Commercial Solvents, 34

  Commission on Firm Aims and Goals (McKinsey), 104, 105–6, 122

  committees, McKinsey: Walton’s expansion of, 105–6. See also specific committee

  Compaq, 254

  compensation. See executive compensation; specific person or type of employee

  competition: alumni as McKinsey, 205–6

  banking industry-McKinsey advice and, 290

  German, 159

  Henderson essay about, 115–16

  and impact of consultants, 173

  IT and, 199–200

  and McKinsey in 1970s, 105

  and McKinsey alumni network, 191–92

  and McKinsey enduring competitive edge, 116

  McKinsey expansion in Europe and, 78

  McKinsey as frustrating, 168–69

  McKinsey image and, 205–6

  and McKinsey impact on clients, 5

  and McKinsey refusal to go public, 118

  McKinsey revenue/fees and, 203–4

  and McKinsey setbacks, 168

  and post–World War II boom, 95

  rise of consulting and, 19

  spying and, 190

  strategic planning and, 186

  strategy consulting and, 88–89

  for talent, 90, 119, 166, 247, 263, 290. See also specific person or corporation

  Computer Sciences Corporation, 199

  Concept of the Corporation (Drucker), 90

  Condé Nast, 6, 174, 187, 279–81

  confidentiality, 44, 51, 57–58, 279. See also Gupta, Rajat: insider-trading case of; Kumar, Anil: insider trading by

  conflicts of interest, 90–92, 105, 265, 286

  conformity, 49, 82, 103, 330

  conglomerates, 100, 181, 326

  The Consultants’ Coloring Book (McKinsey staff), 48–49

  consultants/consulting: analysis role in, 113

  auditors and, 31

  BCG influence on, 112–13

  Bower views about, 15, 31, 41, 43–45, 46, 124, 208

  cashing out in, 42

  characteristics of, 43

  compensation for, 119–20, 236

  cost cutting/layoffs and, 8, 30, 125

  credibility of, 93

  criticisms of/concerns about, 27–28, 260–62

  cubic, 225–27

  decline in demand for, 95

  Dimon views about, 1

  as efficiency experts, 186

  elusiveness of, 9–10

  as engineers, 186–87

  failing firms and, 36

  in the future, 325, 329

  General Survey Outline influence on, 22–23

  greed of, 208

  growth/expansion of, 27, 62–63, 93, 261

  impact of Enron-like scandals on, 251

  importance of, 212

  and Industrial Prussianism, 186

  McKinsey accomplishments and, 35

  as mercenaries, 8

  as missionaries, 8

  origins of, 261

  pretense of, 51

  as prima donnas, 226–27

  product of, 168

  professionalization of, 41

  reputation of, 26–27, 251

  rise of, 18–20

  and role of consultant in client-consultant relationship, 9–10

  Romney views about, 1

  and sharing of information, 18–19

  societal contributions of, 124

  strategic thinking and, 55

  in twenty-first century, 265

  waves in history of, 198–200. See also consultants, McKinsey

  consultants, McKinsey: “basic habit of success” of, 75

  benefits of hiring, 93

  blacks as, 106

  centralization and, 108

  characteristics/personality of, 75–76, 80–84, 106, 165–66, 170–71, 334

  compensation for, 87, 119–20, 145, 159, 160, 254

  concerns about Gupta leadership by, 237–38

  and control of McKinsey, 277–78

  credibility of, 93

  criticisms of, 117

  decline in demand for, 95

  diversity among, 169

  enduring contribution to firm of, 120

  evaluation/review of, 83, 159

  freedom of, 234

  FSI and, 233

  growth/expansion of, 93

  image/reputation of, 117, 157, 170, 234

  IT and, 201–3

  and link of pay to client performance, 266

  McKinsey European expansion and, 75–77

  and McKinsey in the future, 335

  and McKinsey revenue, 236

  motivation of, 77, 119–20

  as networkers, 210

  number of, 73, 96, 198, 222, 269

  promotion of, 84

  publicity and, 155

  relationships among, 275, 325

  self-perpetuating sell of, 92

  staffing leverage and, 87

  T-shaped, 122

  as technocrats, 170

  turnover of, 83–84, 119, 127, 264–65, 327

  women as, 106

  writings by, 156, 157

  and youth as prized over experience, 80–82. See also employees, McKinsey; specific office, person, or topic

&
nbsp; Consulting Demons (Pinault), 190, 212, 251, 260

  Consulting magazine, 38, 324

  Consulting News, 118

  Consumer Insights Center, McKinsey (China), 230

  Consumer Wants and How to Satisfy Them (Cherington), 53

  The Continental Affair (McCollom), 179

  Continental Illinois Bank, 179–80

  Conway, Charles, 254

  Cookie magazine, 280

  Cooper, Wayne E., 249

  Cooper’s & Lybrand, 138

  Copeland, Tom, 216, 223

  Copisarow, Sir Alcon, 76, 80

  Cordiner, Ralph, 69

  Corning Glass, 194–95

  corporations: conformity within, 64–65

  dismantling of, 100

  diversification of, 63, 92

  M-form structure of, 16–18, 54–55, 88

  McKinsey accomplishments and, 326

  McKinsey impact on, 326

  mergers and acquisitions of, 63, 100

  and post–World War II boom, 63, 95

  separation of ownership and management in, 20

  strategy as justification for existence of, 184

  takeovers of, 124, 125. See also specific corporation

  Corrigan-McKinney, 28

  Corson, John, 70

  Corus Group, 175

  cost cutting/layoffs: conflict of interest concerns and, 91

  consultants as casualties of, 125

  consultants’ role in, 30, 125

  and criticisms of McKinsey, 211

  and differentiation of American and foreign companies, 211

  and effects of McKinsey, 174

  in Europe, 107

  and executive compensation, 248

  in federal government, 285

  and hiring McKinsey to make a point, 187, 189

  at James O. McKinsey & Company, 30

  at Marshall Field, 29–30, 53

  McDonald and, 126–31

  at McKinsey, 30, 269, 297

  McKinsey (James O.) views about, 12, 29–30

  in McKinsey New York office, 71

  McKinsey revenue and, 96

  McKinsey as scapegoat for, 8, 96, 107, 117, 248

  in 1990s, 211

  as product of McKinsey, 174, 278–79

  reengineering and, 211. See also specific corporation

  Coulter, Jim, 167

  Cox, David, 286

  Cozinc Rio Tinto, 94

  Crainer, Stuart, 110, 173

  Cravath, Swaine & Moore, 83

  Creative Destruction (Foster), 247, 248, 263

  Crédit Lyonnais, 79

  Credit Suisse, 245, 253, 257

  Credit Suisse First Boston, 279

  Cresap, McCormick and Paget, 42, 55, 118

  Crocker Bank, 166

  Crockett, Horace “Guy,” 31, 37, 38, 39, 56–57, 61, 86, 102

  Crutchfield, Edward, 254–55

  cubic consulting, 225–27

  culture/values, McKinsey: clients and, 275, 331, 333

  and cult of servitude, 102

  of dissent, 266–67

  and Enron-McKinsey relationship, 247

  and expansion of McKinsey, 325

  impact of Enron collapse on, 251

  and individual ethos, 66, 94, 156, 163

  internal concerns about Gupta influence on, 237

  Katzenbach comments about, 171

  and knowledge, 218

  and McKinsey in the future, 325, 330, 331

  and recruiting and training, 171

  risk taking, 209–10

  sharing and, 143

  and size of McKinsey, 320

  team building and, 208

  and turnover of employees, 330. See also specific managing director

  Cunard, 78

  Cunniffe, Maurice, 48

  Cyber Dialogue, 265

  Czerniawska, Fiona, 251

  Daimler-Benz, 157, 161, 207

  Dangerous Company (O’Shea and Madigan), 212, 260–61

  Dangerous Markets: Managing in Financial Crises (Barton), 297

  Daniel, Ron: accomplishments of, 171

  Bales case and, 71

  Bower compared with, 134–35

  Bower-Crockett relationship comments of, 57

  Bower relationship with, 126

  and boxing ring cartoon, 167

  clients-McKinsey relationship and, 137–38, 185

  clients of, 134, 135

  compensation for, 153, 208

  Davis compared with, 274–75

  and economy of 1980s, 136

  elections as managing director of, 105, 129, 134

  and evaluation of employees, 159, 169

  executive committee of, 277

  Forbes comments of, 185

  generalists and, 197

  and German activities of McKinsey, 158

  Gluck compared with, 196

  Gluck relationship with, 135–36, 142, 196–97

  Gluck as successor to, 116

  and growth in 1960s, 104

  Gupta compared with, 224–25

  as Harvard treasurer, 83

  Henzler relationship with, 160

  IT and, 200

  knowledge focus of, 133, 138–39, 145, 146, 197, 218

  and layoffs in New York City office, 71

  as leader, 136

  legacy of, 219, 271

  as McDonald successor, 133

  and McKinsey alumni, 164

  McKinsey bureaucracy and, 277

  McKinsey culture and, 143, 319

  and McKinsey fees, 185, 186

  McKinsey growth/expansion and, 229, 238

  McKinsey mission and, 169

  McKinsey structure/organization and, 142

  media and, 135

  as mentor, 135–36

  Ohmae’s work and, 161, 162

  personal and professional background of, 133–34, 196

  personality/style of, 133, 134–35, 138, 196, 274–75

  Peters-Waterman work and, 147, 151, 153

  power of, 158

  practice information system/practice-development network and, 142–43

  and recruiting and training, 166–67

  and selflessness at McKinsey, 44–45

  technology interests of, 170, 196

  tenure of, 134, 135

  David-Weill, Michel, 231

  Davis Commission, 70

  Davis, Ian: accomplishments of, 275

  Barton compared with, 299

  as Barton mentor, 299, 300

  board memberships of, 305

  as candidate for managing director, 273

  Clee achievements comment of, 102

  client relationships and, 273, 274, 275, 281, 294

  and control of McKinsey, 276–78, 297

  and culture/values of McKinsey, 273, 274, 275

  Daniel compared with, 274–75

  election as managing director of, 273–74

  growth/expansion of McKinsey and, 277, 297

  as head of London Office, 273

  Henzler leadership comment of, 159

  and Killefer’s public sector practice, 282–83

  knowledge-building views of, 278

  and Kumar insider trading case, 308, 317

  McKinsey bureaucracy and, 277

  McKinsey mission/focus and, 275

  McKinsey revenues and, 294

  and partnership morale, 321

  personality/style of, 274–75

  and personalizing of McKinsey, 275

  and Swissair missteps, 257

  views about Gupta of, 275, 278

  Day, Peter, 288

  “Debt and Deleveraging: The Global Credit Bubble and Its Economic Consequences” (McKinsey); Mer views about, 323–24

  decentralization, 74, 77, 78, 89, 107–8, 276. See also specific corporation

  Defense Department, U.S., 68, 217

  Defense Logistics Organization, 270

  Dell Computers, 264

  Dell, Robert, 168

  Deloitte & Touche, 192, 199, 328

  Delo
itte Consulting, 199

  Delta Air Lines, 188, 233

  deregulation, 91–92, 165, 232, 240, 244, 248, 326

  Deutsch, Clay, 142, 174–75, 186, 215, 332

  Deutsche Bank, 79, 213, 214

  Deutsche Post, 296

  Dieter-Bluhm, Hans, 216

  Digital Equipment Corporation, 201

  Dimon, Jamie, 1, 185–86, 232, 287

  directors, McKinsey: blacks as, 169

  Carnegie as youngest, 94

  compensation for, 165, 207–8, 233, 267

  conferences of partners and, 72, 73, 117, 165, 171, 198, 208, 218, 234, 238, 245–46, 266, 294, 316–17

  elections of, 100–102, 135

  “lead-or-leave” policy and, 83

  promotions to, 208

  retirement of, 267

  and size of McKinsey, 321

  up-or-out policy and, 127. See also managing director, McKinsey; partners, McKinsey; specific person

  Donaldson, Lufkin & Jenrette, 117–18, 253

  dot-com boom, 234, 235, 236, 264–67, 269, 273, 294

  downsizing. See cost cutting/layoffs

  dress code, 47–49

  Drucker, Peter, 55, 90, 151, 326

  Dun & Bradstreet, 233

  Dunlop Rubber, 5, 76

  DuPont, 17, 18, 27, 54, 88–89, 90

  Duracell, 305

  Dusseldorf, Germany. See Germany

  Dyke, Greg, 181

  EAGLE (Exciting Associates for Greater Long-Term Enrichment), 233

  earnings. See revenue/fees

  East Germany, 212–13

  Eastman Kodak, 27

  eB2B commerce, 266

  eBay, 264, 329

  Economist magazine, 112, 156, 273, 284, 285

  economy: downturn in global, 294

  gold standard and, 128

  influence on McKinsey of, 103–4, 136

  and McKinsey in the future, 329

  in 1970s, 99–100, 103–4, 128

  in 1980s, 136

  Edersheim, Elizabeth, 36, 48

  Education Department, U.S., 283

  Eisenhower, Dwight, 67, 68

  Electronic Data Systems, 199

  Elkind, Peter, 241, 245

  Emerson, Harrington, 26

  employees, McKinsey: appearance of, 4, 47–49

  black, 106, 169

  change-of-career options for, 209

  characteristics of, 7, 42, 44, 46–49

  community relations and, 46

  compensation for, 125

  Daniel personnel processes for, 133

  diversity of, 106

  evaluation of, 86, 159, 169

  experience of, 51

  functions of, 3

  image of, 3

  as insecure overachievers, 81

  and McKinsey in the future, 330

  methods of, 3

  number of, 52, 105–6, 164–65, 198, 222, 294, 322

  overstaffing of, 269–70

  psychological evaluations of, 86

  reading program/book reports of, 50

  role within McKinsey of, 66

  self-image of, 3

  service approach of, 43–44

  successful, 46–48

  training and review program for, 85, 86, 235

 

‹ Prev