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