The Firm: The Story of McKinsey and Its Secret Influence on American Business
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turnover of, 83–84, 223, 235, 264–65, 269–70, 330
women as, 106, 169–70. See also “up-or-out” system; specific person or type of employee
engagement managers, McKinsey, 121–22, 201
engineering, 24, 27, 38, 51, 170, 186–87
Engwall, Lars, 252
Enron: accountability at, 244
accounting fraud at, 246–47
collapse of, 244, 246–47, 261, 290
compensation at, 245
criticisms of, 244
as culmination of capitalism, 261
culture at, 241, 242, 243, 244
Gladwell story about, 262–63
and Gupta as managing director, 239–52
impact on McKinsey of collapse of, 247, 249–52, 270
lobbyists for, 241
McKinsey confidentiality about, 58
as McKinsey failure, 2, 86
McKinsey as favored advisor to Skilling at, 7
McKinsey fees from, 246
McKinsey liability for collapse of, 247
McKinsey relationship with, 239–40, 242–44, 247, 248–51
mission of, 242
off-balance-sheet financing at, 243, 244, 245, 247, 249, 288
popularity of, 241
rank and yank system at, 244–45
reputation of, 243–44
revenues of, 241
risk management at, 245
as Skilling client, 239–40
Skilling named president of, 240–41
as trading firm, 246
turnover at, 244–45. See also Skilling, Jeff
Equal Employment Opportunity Commission, 207
Ernst & Young, 199, 200, 201, 328
Europe: American investment in, 78
McKinsey expansion into, 55, 56, 73–80, 95. See also specific nation or city
evaluations, McKinsey, 83, 86, 133, 159, 169, 204–5, 209, 325, 331, 332
The Evolution of Strategic Management (Gluck), 141–42
“Excellence” folio, 147–48
executive committee, McKinsey: of Bower, 66, 94, 100, 138, 277
of Daniel, 277
McKinsey power structure and, 121
executive compensation, 65–66, 82, 105, 121, 248, 302, 334
experience curve, BCG, 109, 110
Export-Import Bank, 80
Facebook, 327, 334
Falvey, Mary, 106
Farr, Chuck, 182
Farrell, Diana, 218, 284, 290–91
Fastow, Andy, 241, 246, 249
Federal Bureau of Investigation (FBI), 283, 318
Federal Incomes and Excess Profits Tax Laws (McKinsey), 21
Federal Reserve, 166
Federal Trade Commission Act (1914), 18
Federated Department Stores, 204
fees, McKinsey. See revenue/fees
Feiger, George, 166, 208, 227, 232
Ferguson, Roger, 216, 223, 284
Fidelity Investments, 175, 305
financial institutions group (FIG), McKinsey, 277
Financial Management (McKinsey), 21
Financial Market Meltdown (Mellyn), 289
Financial Services Authority, 285
financial services industry: and capitalism concerns, 261
criticisms of, 260
culture/values of, 320
McKinsey activities with, 230–33
McKinsey alumni and, 231–32, 286
McKinsey role in bubble in, 286–94
profits in, 291. See also banking industry; Wall Street; specific organization or person
Fiorina, Carly, 254
Firm Strategy Initiative (FSI) (1995, 1997), 226, 233–34
First Boston, 253, 327
First Chicago, 287
First Interstate Bancorp, 189
Fisher, Jim, 226–67
Five Forces theory, 90
Fletcher, Dick, 38
Flynn, Tim, 281, 322
Foote, Nathaniel, 216, 223
Forbes magazine, 165, 168, 185, 310
Forbis, John, 118
Ford, Henry, 11, 19, 26, 109, 190
Ford Motor Company, 19, 51
Fortune magazine: best companies to work for survey of, 328
Bower interview for, 43
boxing ring cartoon in, 167
Enron stories in, 241, 246
executive compensation article in, 65
and expansion in consulting services, 93
GM story in, 184
Godrej comments about Gupta for, 314
and Gupta resignation from Goldman Sachs board, 313
Guzzardi article in, 92
and hiring McKinsey just to prove a point, 188
Huibregtsen comment about fees for, 204
Katzenbach comments about McKinsey recruiting for, 171
Lafley’s comments about Gupta for, 314
leadership production story in, 295
McKinsey consultant profiles in, 156
and McKinsey as leadership creator, 233
McKinsey profile in, 206–7
research at McKinsey story in, 215
strategic planning survey by, 140. See also Huey, John
Foster, Dick, 217, 247, 249, 250, 263
four-box matrix (BCG), 88, 109, 113, 140, 143, 144
Four Roses Whiskey, 54
Foy, Peter, 139–40, 162, 165, 176
frameworks, McKinsey, 143–45
Fraser, George MacDonald, 47
Fraser, Jane, 248
Frazer, George, 14
Frazer and Torbet, 14
Frito-Lay, 211
From Higher Aims to Hired Hands (Khurana), 65, 124–25
Fuld, Dick, 230
Fuller, Joe, 198
The Functions of the Executive (Barnard), 55
The Future of Management (Hamel), 333
Gaither Commission, 70
Galleon fund, 308, 310, 313, 314, 315, 316
Gandhi, Mahatma, 314
Gay, Edwin, 26
GB Voyager Multi-Strategy Fund, 313
Geigy, 79
General Electric (GE): in American Century, 17
and BCG-McKinsey competition, 113–15
Bedaux as consultants for, 27
decentralization of, 76
diversification at, 63
government contracts for, 69
and hiring McKinsey to prove a point, 189–90
McKinsey alumni and, 282
McKinsey lending advice to, 291
mergers and, 17
multidivisional structure of, 18
NBC purchase by, 189–90
specialization at, 215
strategic business units at, 114–15
strategic planning at, 113–15
General Foods, 64
General Mills, 295
General Motors (GM): in American Century, 17
bankruptcy of, 184
Drucker book about, 90
growth and control dilemma at, 17
Japanese as competitors of, 183
McKinsey as consultant to, 2, 86, 174, 181–84
as McKinsey failure, 191
McKinsey impact on, 86, 174, 181–84, 327, 332
organization/reorganization of, 54, 55, 183–84
Patton Work for, 65
Sloan impact on, 19, 54
Smith as CEO of, 177
General Post Office, British, 76, 77, 78
General Survey Outline (GSO), McKinsey’s, 22–23, 25, 28, 141
generalists, 94, 120–23, 133, 139, 142–46, 197, 201, 215
George, Bill, 313
George Fry & Associates, 42
Germany: cost cutting/layoffs in, 212–14
criticisms of McKinsey in, 212–14
McKinsey activities in, 87–88, 107–8, 157–61, 165, 212–14, 279
McKinsey European expansion and, 79, 228
McKinsey office managers in, 162
Peters and Waterman’s work and, 150
power of McKinsey office in, 108
“the McKi
nsey society” in, 212–14
Gerstner, Lou, 7, 41–42, 81–82, 217, 233, 303–4
Ghemawat, Pankaj, 56
Gillette, 314
Gingrich, Newt, 232
Gladwell, Malcolm, 262–63
Glass-Steagall Act (1933), 18
Glassdoor surveys, 295
Glennan, Keith, 68
“global profit pools,” 302–3
globalization. See growth/expansion, McKinsey; specific nation or city Globe and Mail (Canada): Barton comments to, 300
Gluck, Fred: appearance of, 196, 219
Barton compared to, 299
and BCG as competitor, 116, 140, 264
Carnegie and, 194–95
clients and, 194–96, 197, 198, 245
compensation for, 207–8
Daniel and, 135–36, 142, 146, 196–97
Davis recommitment to era of, 278
early years at McKinsey of, 194–95
elections as managing director of, 153, 168, 197, 198
“Excellence” folio and, 147
focus of McKinsey and, 139
and Fortune-Huey profile of McKinsey, 206
generalist-specialist debate and, 142
and greed at McKinsey, 219
and growth/expansion of McKinsey, 193, 198, 221
Gupta and, 224, 225
Henzler and, 158
and intellectualization of McKinsey, 164
and IT consulting, 200–203
knowledge focus of, 145, 197, 214–18, 223, 278
legacy of, 215, 219, 271
McKinsey bureaucracy and, 277
McKinsey hiring of, 194
McKinsey image and, 194
and McKinsey as Jesuits of Capitalism, 215–20
McKinsey revenues/fees and, 197, 203, 205, 219
McKinsey structure/organization and, 142
personal life of, 219–20
personal and professional background of, 170, 193–94
Peters-Waterman work and, 147, 148
post-McKinsey activities of, 220
practice bulletins of, 141, 278
promotions of, 197
reengineering and, 211
and self-image of McKinsey, 166
sharing culture and, 143
and strategy initiative, 146, 153, 197
Superteam of, 140–42
technology interests of, 193, 196
writings by, 141–42
Godrej, Adi, 314
Gogel, Don, 232
Golden West Financial, 254–55
Goldman Sachs: Buffett investment in, 313, 315
Bush administration and, 284
competitors of, 328
Enron compared with, 246
in the future, 328
Gupta as board member at, 311–12, 313, 315–16, 321, 322
and Gupta insider-trading case, 315–16, 317
Japanese clients of, 165
and long-term/short-term strategy, 292
McKinsey alumni at, 232
McKinsey compared with, 9
Golightly, Henry, 46–47
Good Bank/Bad Bank exercise, 175
Google, 4, 182, 264, 295, 327, 329
Gorman, James, 7, 42, 197
Gourmet magazine, 280
government: British, 107
bureaucratization of consulting process for, 72
Dutch, 175
local, 283
as McKinsey clients, 67–69, 70, 282–86
McKinsey impact on, 326
public/private partnerships and, 176
and U.S. government as McKinsey client, 67–69, 70, 282–86
and “whole government transformation” advice of consultants, 293. See also deregulation; regulation, federal
Grauer, Peter, 323
Great Britain: government-McKinsey consulting in, 107
McKinsey expansion into, 95. See also London, England, McKinsey office in
Great Depression, 25, 27, 28, 30, 33, 53, 54, 64
Great Talent Hunt, 90
Green, Steven, 232
Greenspan, Alan, 223
grocery business, 115
Grohe, 279
Grossman, Larry, 189
“grow-or-go” approach, 83
growth/expansion, McKinsey: in Africa, 79, 169, 228
in Asia, 80, 115, 160, 300, 301, 335
Bower and, 73, 75–76, 94, 95, 171
and compensation of employees, 120
and complexity, 331
and culture/values of McKinsey, 325
Daniel and, 229, 238
Davis and, 277, 297
decentralization and, 77, 78
in Europe, 61, 80, 77, 78, 79, 160, 162, 165
globalization and, 4, 5, 9, 74, 77, 78, 79, 80, 102-3, 115, 136, 138, 160, 162, 165, 169, 193, 226, 325, 326
and Gluck, 193, 198, 221
and Gupta, 260, 268, 277
and Harvard partnership, 61
and McKinsey in the future, 325, 331
in 1940s and 1950s, 52–53, 74
in 1960s and 1970s, 64, 94, 102–3, 107
in 1980s and 1990s, 164, 222
scaling back of, 277
in South America, 160
between 2001 and 2005, 222. See also revenue/fees, McKinsey; specific nation, state, or city
growth-share matrix (BCG), 89, 109, 110
Gulf War, First, 217–18
Gupta, Rajat: accomplishments of, 222–23, 237, 260
Barton compared to, 299, 301
board memberships of, 311–12, 314, 321, 322
Bower compared with, 225
Bower eulogy of, 270
clients and, 238, 268, 275
compensation/wealth of, 267, 311
as creating office of managing director, 277
cubic consulting and, 226
culture/values at McKinsey and, 233–36, 237, 260, 265–66, 271, 275, 321, 322
Daniel compared with, 224–25
Davis views about, 275, 278
EAGLE and, 233
economy during tenure of, 136
elections as managing director of, 221, 223–24, 268, 273, 274
and Enron, 239, 249, 250
evaluation of, 263–70
financial industry and, 232
Firm Strategy Initiative and, 226
and Fortune-Huey story about McKinsey, 206
Gluck and, 224, 225
as Goldman Sachs board member, 311–12, 313, 315–16, 321, 322
greed/growth-at-all-costs attitude of, 159, 209, 215, 222, 234–35
growth/expansion of McKinsey and, 221–22, 237, 238, 268, 277
impact on McKinsey of, 237–38, 271, 321–22, 324
insider-trading case of, 271, 310, 311–20
internal challenges facing, 263–70
internal concerns about leadership of, 237–38
knowledge building and, 222–23, 237, 268, 278
as Kumar mentor, 309
Kumar testimony against, 310
as McKinsey alum, 7, 8, 10
McKinsey bureaucracy and, 277
and McKinsey equity with clients, 265–66
McKinsey partners’ views about, 266, 278
McKinsey revenue/fees and, 222, 234–35, 266, 267–70
and missteps/failures at McKinsey, 252, 259
personal life of, 267
personal and professional background of, 221, 224
personality/style of, 224–25, 266–67
post-McKinsey activities of, 311–20
Rajaratnam/Galleon and, 312–13, 314, 315, 322
and recruiting and training, 260
reputation of, 225, 312, 313
retirement of, 311
self-image of, 224–25
Skilling considered as successor to, 242
support for, 313–14, 315
and Swedish banking industry collapse, 252
tenure of, 238
Guttman, Daniel, 68, 70
Guzzardi, Walter, Jr., 92
Hagemann, Helmut, 158
Hague, William, 42, 286
Hall, Ted, 166, 219
Hamel, Gary, 333
Hammer, Michael, 210
Handfield-Jones, Helen, 248
Hanna, Ali, 314
Harper & Row, 148
Harvard Business Review, 65, 155–56, 157, 301
Harvard Business School: Baker Scholars at, 80, 94, 327
BCG recruitment at, 110
Bower as student at, 33, 34
Carnegie at, 94
case study method at, 104, 235, 288
competition for recruitment at, 111
criticism of In Search of Excellence by, 151
Daniel recruitment at, 134
founding of, 20, 26
Gupta as graduate of, 224
McKinsey case studies at, 104, 235
McKinsey compared with, 7–8
McKinsey recruiting at, 111, 134, 327, 328
McKinsey relationship with, 61, 80–84, 170, 192, 205, 288
McKinsey research activities compared with, 215
Monitor founding and, 198
hedge funds, 291
Heinz, 5, 17, 52, 53, 74, 76, 115
Hemphill, William, 24
Henderson, Bruce, 88–89, 109, 110, 113, 115–16, 119, 164, 199
Henzler, Herb, 148, 157–61, 162, 164, 209, 212, 214, 223, 224, 266
Herrhausen, Alfred, 214
Hewlett-Packard, 147–48, 254
Higdon, Hal, 24, 46, 76, 121, 178, 189–90, 202
hiring. See recruiting/training
Hochhuth, Rolf, 213–14
Hodges, A. C., 21
Holland, Bob, 106
homosexuality, 46–47
Hong Kong: McKinsey expansion into, 80
Hoogovens, 175
Hoover Corporation, 5, 75, 76
House of Lies (Kihn), 178
Houston Natural Gas, 239
Hoyos, Juan, 275
HSBC Capital, 232
Huey, John, 42, 85, 184, 188, 206, 215
Hughes, Howard, 58–59
Huibregtsen, Mickey, 204–5, 206
Hulme, Ron, 242, 250
Hunter, Robert, 259
Iacocca, Lee, 190
IBM: as brand, 187
as competition for McKinsey, 199
conformity within, 64
European expansion of, 5
“Excellence” of, 154
and Gerstner as McKinsey alum, 7, 41, 81, 233, 303–4
leadership product at, 295
McKinsey alumni at, 233, 282
McKinsey compared with, 187
McKinsey as consultant to, 303–4
as McKinsey European client, 74
McKinsey testing of computers from, 200. See also Gerstner, Lou
ICG (Information Consulting Group), 200–201
ICI, 76
Imperial Chemical Industries, 78
In Search of Excellence (Peters and Waterman), 148–55, 156, 173, 180, 210, 243, 308
India, 170, 221, 228, 309
Indian American Council, 309
Indian Institute of Technology, 224
Indian School of Business, 309, 312
Industrial Prussianism, 186
Information Consulting Group (ICG), 200–201