The Firm: The Story of McKinsey and Its Secret Influence on American Business
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information technology (IT), 199–203, 297, 332
Innovation: The Attacker’s Advantage (Foster), 250
“The Inside of Ohmae’s Brain” (Ohmae), 163
Insurance Company of North America, 106
insurance industry, 66, 121, 232. See also specific organization
Intel Corporation, 264
Internal Revenue Service (IRS), 244
International Chamber of Commerce, 314
International Harvester, 18
InterNorth, 239
investment banking, 253, 261, 290, 291. See also Wall Street; specific organization
investor capitalism: rise of, 124–25
ITT (International Telephone & Telegraph), 74, 211
James O. McKinsey & Company. See McKinsey (The Firm)
Japan: automobile industry in, 104, 163, 183
McKinsey activities in, 115, 134, 146, 148, 161–64, 165
Peters and Waterman’s work and, 150. See also Ohmae, Kenichi
Japan Airlines, 115
Jarrard, Michelle, 276–77, 294, 306, 320
Jenkyn, Oliver, 293
Jensen, Michael C., 124
Jesuits: McKinsey & Company compared to, 3, 41
Jobs, Steve, 11, 168, 328
Johns Manville, 53
Johnson & Johnson, 250, 305
Johnson, Abigail, 305
joint venture: Donaldson, Lufkin & Jenrette and McKinsey as, 117–18
Jones Day, 33–34
Jordan, Michael, 303
Jordan, Vernon, 169
JP Morgan, 287
JPMorgan Chase, 1, 185, 232, 253, 287, 296, 328
Justice Department, U.S., 315, 318
Kaiser Associates, 110–11
Kanagat, Atul, 314
Kanarek, Larry, 188, 189, 300
Kantrow, Alan, 157, 161–62, 185, 216, 223
Katzenbach, Jon, 73, 91, 126, 170–71, 197, 208
Kaufman, Stephen, 303
Kayser, Olivier, 228
Kearney, A. Tom, 24, 31, 37, 38, 42, 44, 56, 205, 236, 305
Keller, Maryann, 183, 184
Kennedy Information, 249
Kennedy, John F., 49, 69
Kestenbaum Commission, 70
Khurana, Rakesh, 27, 65, 124–25
Kibasi, Tom, 286
Kidder, C. Robert, 305
Kiechel, Walter, 55, 110, 139, 141, 160–61, 167, 212, 236, 268
Kihn, Martin, 80, 84, 178
Killefer, Nancy, 106, 198, 222, 282–85
Kinder, Rich, 240
Kinsey, Alfred E., 158
Kipping, Matthias, 138, 168, 198–99
Kissinger, Henry, 158, 241
KLM Airlines, 79, 255
Kmart, 2, 254, 258
Knowledge Center, McKinsey (New Delhi), 237
knowledge focus, McKinsey: and Barton, 302, 303
Daniel focus on, 133, 138–39, 145, 146, 197, 218
Davis view about, 278
generalist-specialist discussion and, 142–46
Gluck focus on, 145, 197, 214–18, 223, 278
Gupta views about, 222–23, 237, 268, 278
and McKinsey reputation, 223
and practice-information system/practice-development network, 142–43
proprietary, 302–3
and sharing of knowledge, 216
spending on, 216, 222–23
Knowledge Unplugged (McKinsey Co.), 156
Kohlberg Kravis Roberts, 125
Korea, 301
Kovats, Ernie, 195–96
KPMG, 199, 281, 322, 328
Kraft, 224
Kuhn, Loeb & Co., 25
Kumar, Anil: clients of, 322
and Gupta case, 310, 317, 318
Gupta as mentor to, 309
as head of Knowledge Center, 237
impact on McKinsey of conviction of, 320–21, 322, 324
insider trading by, 307–10, 312, 315, 317
as McKinsey alum, 7, 8
Rajaratnam and, 308, 310, 315, 317
Kurjuweit, Dirk, 213
Kwak, James, 81
Lack, Andy, 323
Lafley, A. G., 314
Lang, Laura, 281
Lanning, Michael, 181
Latham & Watkins, 167–68
lawsuits, McKinsey, 249–50
Lay, Kenneth “Kenny Boy,” 241
layoffs. See cost cutting/layoffs
Lazard Frères, 231
Le Monde newspaper, 77
“lead-or-leave” approach, 83
leadership, business: in American Century, 16–18
budgeting and control as part of, 114
conformity and, 82
dilemma of, 16–18
function of, 335
McKinsey as creator of, 192, 233, 304
and McKinsey in the future, 331
power and, 17. See also CEOs; management
Leavitt, Harold, 177
Lee, Charles, 74
Lee, Jimmy, 253
Lee Myung-bak, 302
Legend Computers, 229
LEGO, 4
Lehman Brothers, 230, 232, 287
Leiding, Ernst, 107
Leif, Thomas, 214
Lemann, Nicholas, 262, 327
Lenin, Vladimir, 26
Levi Strauss, 233
Levinson, Linda, 170
Lewis, Drew, 188
Liddy, Edward, 258, 293
Life magazine, 15
Linden, Larry, 232
Lindsay, John, 70–71
local government: McKinsey activities with, 283
London Daily Mail, 286
London, England, McKinsey office in: Barton in, 301
and client dissatisfaction, 180–81
managers of, 80, 108, 162
McKinsey in 1970s in, 107, 108
and McKinsey alumni, 285–86
McKinsey expansion to, 73–80, 106–7
and McKinsey foreign strategy, 106–7
and McKinsey influence in Great Britain, 286
Parker retirement in, 108
power of, 108
and public/private partnerships in England, 176
public sector activities of, 285–86
revenue at McKinsey in, 127
Scottish Development Agency and, 175–76
staffing of, 106–7
London Financial Times, 156, 329
London Sunday Times, 77, 187, 226, 259, 288
Long, Augustus “Gus,” 74
The Lords of Strategy (Kiechel), 55, 110, 139, 141, 268
Los Angeles, California: McKinsey office in, 64, 128
LOT, 256
Lotz, Kurt, 107
Loudon, John, 74–75
Lowe, Rob, 220
Lowry, Jim, 106
LTU, 256
Luce, Henry, 15–16
Lufthansa, 257
Lukens Steel, 53
M-Form, 16–18, 54–55, 77, 79, 107–8
MAC Group, 168
MacCormack, Bill, 328
MacLehose, Murray, 80
Macomber, John, 77, 80
Macy’s, 30
Madigan, Charles, 260–61
Madison, Mitchell, 305
Madison Square Garden, 279
Magnetar, 291
management: accountability of, 124
in American Century, 16–18
Bower’s views about, 124
dilemma of, 16–18
economy of 1970s and, 104
and emergence of strategic planning, 55–56
and end of era of managerialism, 103
essence of efficient, 113
growth of professional, 27
history of, 25–26
increase in number of people in, 99
justification for, 89
as management engineers, 24
matrix, 179, 180
McKinsey dealings with level of, 63–64
McKinsey (James O.) impact on corporate, 12
in 1970s, 99
and organizational structure, 54, 63–64
and post–World War II boom, 63
professionalization of, 19–20
reputation of, 25–26
and rise of consulting, 18–20
“scientific,” 4, 26, 27
separation of corporate ownership and, 20
strategy as essential discipline of, 89
“visible” hand of, 20. See also clients; executive compensation; leadership, business; specific person or corporation
management capitalism, 99
Management Group Administration Committee (McKinsey), 105
The Management Myth (Stewart), 25–26, 151, 206
Management by Objectives, 90
The Management Viewpoint in Credit Extension (Bower), 52
Manager magazine, 164
Managerial Accounting (McKinsey), 22
“managerial intensity,” 99
managing director, McKinsey: Barton elections as, 297, 299–300, 301, 324
compensation for, 208
Daniel election as, 129
Davis election as, 273–74
and elections for Bower’s successor, 100–102
FIG and, 277
first non-Westerner elected, 221
Gluck elections as, 153, 197, 198
Gupta as creating office of, 277
Gupta elections as, 221, 223–24, 268, 273, 274
losers in elections for, 274
McDonald election as, 126
power structure and, 121
powers of, 238
terms for, 100. See also specific person
Mandela, Nelson, 241
Mandelbaum, Jay, 232
Manilow, Barry, 208
Manufacturers Hanover, 182, 287
Manville, Brook, 216, 223
Marakon Associates, 111
Marines, U.S.: McKinsey & Company compared with, 3, 41, 165
Marquez, Vernon “Marq,” 195–96
Marshall Field & Company, 29–30, 35–36, 53, 96
Massachusetts Institute of Technology (MIT): McKinsey as recruiter at, 170
Massey, Ed, 120
Massey Ferguson, 76
Matassoni, Bill, 148, 155–56, 161, 167, 201, 216, 223, 304
matrix management, 109, 113, 143–45, 179, 180
Mattern, Frank, 122, 161, 201, 202, 214, 303
Matzinger, Stefan, 160, 209
McColl, Hugh, 176, 177
McCollom, James, 179–80
McCraw, Thomas, 17
McDonald, Al, 105, 112, 125–31, 133, 134, 135, 299
McDonald’s, 333
McKenna, Christopher, 18, 43, 69, 77, 85, 88, 107, 260
McKinsey & Company. See McKinsey (The Firm)
McKinsey, James O.: accomplishments/contributions of, 35, 39
and accounting as basis of management, 12, 13–14, 15, 89
ambitions of, 15, 53
American Management Association and, 29
appearance of, 13
Bower hired by, 34
Bower relationship with, 32, 35, 36, 95
Bower as successor to, 4, 56–57, 61–62
Bower-Wellington relationship and, 32
and company name, 36
consulting dictum of, 63
death of, 12, 32, 35
and founding of The Firm, 4
impact on McKinsey of, 225, 333
Marshall Field and, 29–30, 35–36, 53, 96
personal and early professional background of, 12–15
reputation of, 11–12, 27
self-image of, 13
speeches of, 50
strategic planning concept of, 41
style/confidence of, 11–12, 13, 14–15, 24–25, 30–31, 35
views about clients of, 266
writings of, 20, 21–23
McKinsey (The Firm): accomplishments of, 1–2, 4–5, 8–9, 39, 67, 181, 218, 326, 332–34
arrogance at, 90–95, 128–29, 165, 205–9, 219, 226
as brand, 205, 206, 211, 278, 289
British perception of, 78
as business model for the future, 248
centralization of, 108, 276
challenges facing, 326, 331, 336
character of, 86, 117, 238
commercial orientation of, 236
complexity of, 331
concerns about direction of, 116–20
as consultants of last resort, 231
contradictions concerning, 3
control of, 276–78, 297
core principles of, 63–64, 301
corporate governance at, 234
credibility of, 175
criticisms of, 6, 77, 112, 137, 171, 212–14, 261–63, 279, 280–81
decentralization at, 276
demand for services of, 335
description of, 128
early years of, 28–30
effects of, 173–92
enduring competitive edge of, 116
exceptionalism of, 94
exclusivity at, 53, 296
failures/missteps of, 2–3, 178–82, 191, 206, 252–59, 292–94, 309
feigned ignorance of own finances at, 296
foreign strategy of, 106–7
founding of, 4, 23–25
funding for, 38
future of, 325–36
goals of, 336
greatest weakness of, 334
image of, 78, 194
incorporation of, 86
investment losses of, 291
as Jesuits of Capitalism, 215–20
as leadership factory, 192, 304
and McKinsey process, 57–59
and McKinsey as verb, 77, 96
mission/purpose of, 38, 43, 44, 117, 138, 139, 169, 233–35, 268, 275
mistakes/missteps of, 332–34
as model for others, 167–68
morale at, 238, 274
motivation of, 77
motto of, 93
name of, 36
New York City as power center for, 221, 226
in 1970s, 97, 106–23
off-the-rack ideas of, 77
organization/structure of, 121–22, 138–42, 248, 331
overextension of, 95
personalizing of, 275
popularity of, 113
power and influence of, 2, 3, 5–6, 9–10, 157, 230, 231, 260, 271, 327
power within, 222
problem-solving abilities of, 53–56
product of, 88
rebranding of, 146–47
reorganization of, 37
reputation of, 1–2, 9–10, 27, 28, 71, 90, 93, 143, 175, 187–90, 206, 223, 251, 260, 324, 329, 330, 332
respect for, 231
sales pitch of, 191
as scapegoat for clients, 8, 96, 107, 117, 248
secrecy of, 36
self-confidence of, 191, 275
as self-governing, 102, 276, 330
self-image of, 8, 57, 119, 128–29, 165–69, 237, 247
as self-perpetuating, 43
self-reflection at, 104, 105–6, 277, 320–24
self-regard of, 182
selflessness at, 44–45
service approach at, 44–45
setbacks of, 168
size of, 227, 294, 320, 321, 325, 329–31
as success, 64, 116, 191, 294–97, 331–32, 336
superiority of, 205
tax issues for, 86
as The Firm, 45
uniqueness of, 42, 43
vision of, 52. See also specific person or topic
McKinsey Global Institute (MGI), 218–19, 226, 285, 290–91
McKinsey Investment Office, 165, 314
McKinsey Is Coming (Hochhuth play), 213–14
McKinsey, Kearney & Company, 37
McKinsey Knowledge Center, 309
McKinsey Quarterly, 111, 123, 157, 218, 229, 243, 290
McKinsey Reports, 49, 50, 85, 123, 229
McKinsey Staff Paper, 141
McKinsey, Wellington & Company, 31–32, 37, 50
McKinsey’s Purge, 29–30, 53
M
cLean, Bethany, 241, 245
Mead Johnson, 64
media, 135, 156–57, 307. See also specific person or organization
Mellon Bank, 174–75
Mellon Financial, 305
Mellyn, Kevin, 186, 263, 289, 290
Mendonca, Lenny, 287
Mer, Francis, 323–24
Meredith Corporation, 280
mergers and acquisitions, 17, 63, 92, 100, 176, 234, 254. See also specific deal
Merrill Lynch, 7, 72, 165, 286, 287, 327
Michaels, Ed, 248
Microsoft Corporation, 111, 182, 264, 327, 328
Milbank, Dana, 137
Miller, Heidi, 186
Mills, Karen, 284
“mimetic isomorphism,” 54
The Mind of the Strategist (Ohmae), 161
Ministry of Defense, British, 270
Minto, Barbara, 123, 169–70
Mintzberg, Henry, 113
Mitchell Madison Group, 205–6
Mitton, E.N.B., 27
Mobil, 92, 135
Molino, Jean, 307
Monitor, 164, 198, 204, 223, 226
Moreno, Paco, 162
Morgan Guaranty, 179
Morgan Stanley, 7, 42, 177, 232, 233
Morrison, Roger, 79, 80
Morvillo, Robert, 309
Moses, Robert, 62
Mother Teresa, 225
Muhlemann, Lukas, 223, 232, 245, 253, 257
multidivisional (M-form) structure, 16–18, 54–55, 77, 79, 107–8
Munger, Charles “Charlie,” 334
Murden and Co., 46
Nader, Ralph, 327
Naftalis, Gary, 313, 316, 319
National Aeronautical and Space Agency (NASA), 68, 69
National Bank of Detroit, 287
National Biscuit, 17
National Economic Council, 284
National Health Service, British, 78, 180, 286
national security: McKinsey consulting about, 68
NationsBank, 177
NBC: GE purchase of, 189–90
Nestlé, 79
Netherlands: McKinsey activities in, 79, 108
Neukom, John, 23, 24, 29, 105
Neul, Chuck, 268
Neuschel, Dick, 66, 94, 100, 101, 121
New Jersey Bell, 55
New Silk Route, 312
New York City: Daniel as manager of McKinsey in, 134
McKinsey consulting work with, 70–71, 92–93, 283
McKinsey office in, 25, 31, 35, 37, 38, 52, 56, 71, 126, 182, 221, 226
as McKinsey power center, 221, 226
in 1970s, 111
New York Observer, 280
New York Times, 71, 76, 94, 106, 201, 268, 291
New Yorker, 262–63, 279, 327
Newman, William, 15
Newsweek magazine, 318
Nimocks, Suzanne, 242, 250
nine-box matrix, McKinsey, 143–45
Nippon Life Insurance, 165
Nortel Networks, 195
North American Aviation, 69
North Carolina National Bank (NCNB), 174, 176–77
Northern Electric, 195–96, 245
Northern Telecom, 195
Nyerere, Julius, 79
Obama, Barack, 224, 282, 284–85, 312