The firm's estimations were off by 108 million. In the 1990s McKinsey advised SwissAir on the controversial “hunter strategy”. The major expansion program failed miserably and the airline was forced to declare bankruptcy in 2001. Other notable clients who ended up bankrupt include Kmart and General Motors.
In Bogdanich and Forsythe's telling, McKinsey was rife with conflicts of interest in which it advised multiple companies within a sector (it denies sharing confidential information among them) and, more disconcertingly, regulators alongside the companies they oversaw.
McKinsey's reputation has taken a hit in recent years.
Sneader had to apologize for the consulting firm's work with a state-owned power provider in South Africa, which was enmeshed in a corruption scandal that brought down the country's president.
McKinsey's Missteps Point to an Industry-Wide Mess. Once management consulting firms lose their integrity to ethical lapses and greed, they have nothing left to sell. A tarnished brand. Management consulting is one of the world's most successful industries.
As a private company, it had no obligation to report information to the public. And as a consulting company, it wasn't regulated. Other types of companies, especially accounting firms and investment banks, have similar client rosters, but they are overseen by government agencies.
McKinsey's survey showed that the top reason for quitting a previous job is a lack of career development and advancement. Having bad managers also drives people away, with 34% of more than 13,000 respondents stating that having uncaring and uninspiring leaders was why they left.
MBB firms have much higher prestige scores (vault 2020)
While McKinsey almost reaches the score of 9, Bain and BCG are both above the score of 8.6; the highest score of the Big 4 group is only 7.1.
By applying the 80/20 principle, consultants can prioritize their efforts and focus on the most critical 20% of tasks that will deliver 80% of the results. A typical consulting project lasts between 8 and 12 weeks, sometimes even less than that.
McKinsey can be a high-stress environment
Yet however bad it gets, most of the stress is internally generated–or at least internally exaggerated–by the McKinsey team or consultants themselves. When things do go wrong, it's usually trivial in the grand scheme of things, sometimes even tragi-comic.
While a job at McKinsey sets you up for a fantastic career in management consulting, it's also notoriously one of the hardest companies to get an offer from. Read on for our top tips to help you land that coveted first consulting role.
Why people leave consulting after only two to four years. The typical length of time for consultants to stay at top firms like McKinsey, BCG or Bain is two to four years. Some statistics indicate that 2.7 years is the average length of time that a consultant works at a top management consulting firm before moving on.
We are a values-driven organization and aspire to meet the highest professional, legal, and ethical standards. McKinsey is committed to making a positive social impact through our work with our clients and in the way we run our firm.
McKinsey is a global consulting firm and has established itself as one of the most influential firms in the world. This fact alone makes getting a job at the firm difficult. McKinsey is also known for its rigorous, intensive, and selective hiring process. It holds extremely high standards in terms of who it hires.
McKinsey stands out as the oldest and largest strategy consulting firm. It's early and aggressive steps to incorporate functional expertise into its problem solving to streamline solutions for client problems requiring this expertise is also distinct.
The SMART Problem-Solving Approach is a method used to systematically and effectively address and resolve issues. The acronym stands for Specific, Measurable, Attainable, Relevant, and Time-bound. Specific: Clearly define the problem and its boundaries.
Gentin believes that young people in particular want more from their careers than conventional understandings of professional success. “The average age at McKinsey is 30,” he says.
Typically, 9am to 9pm are considered to be the typical 'core hours' at top consulting firms, with some variation on either side of the timeframe. On average, a standard number of hours a consultant can expect to work in a week is between 70 and 75, including lunch and travel time.
The highest paying salary package reported for a Management Consultant at McKinsey sits at a yearly total compensation of $445,500. This includes base salary as well as any potential stock compensation and bonuses.
In Ranadive's words: “Whenever you're trying to persuade a senior person to do something, always present 3 reasons. Not 2, not 4, but exactly 3.” Read on to learn why this simple rule is so surprisingly powerful, and how you can apply it in your everyday life!
2) 2/4/8. Every Director in the firm is required to be working on “2” assignments, be in the process of proposing for “4” more, and in communication with “8” more prospective clients. Management within McKinsey follows up to ensure that “2/4/8” is a reality.
It was created by Barbara Minto while at McKinsey in the 1970s. It's applicable not only in the executive scene but also whenever crafting a persuasive argument. The pyramid principle suggests beginning with the end and working your way to the beginning.
Bain and McKinsey pay $112K in base, followed closely by BCG at $110K. That's roughly 58% of MBB and PhD starting pay. Each MBB firm also furnishes a $5K signing bonus.
At McKinsey, recently hired MBAs can make above $200,000 in the initial year, with a $30,000 signing bonus and a performance bonus of $35,000. BCG boasts a performance bonus of up to $45,000, making it the more lucrative of the two for first year hires.
In fact, the McKinsey recruitment process is considered one of the most competitive processes in the corporate world with just a ~1% acceptance rate.