The Hidden Influence of the World's Most Powerful Consulting Firm
368 pages
English language
Published Oct. 4, 2022 by Doubleday.
McKinsey & Company is the most prestigious consulting company in the world, earning billions of dollars in fees from major corporations and governments who turn to it to maximize their profits and enhance efficiency. McKinsey's vaunted statement of values asserts that its role is to make the world a better place, and its reputation for excellence and discretion attracts top talent from universities around the world. But what does it actually do?
In When McKinsey Comes to Town, two prizewinning investigative journalists have written a portrait of the company sharply at odds with its public image. Often McKinsey's advice boils down to major cost-cutting, including layoffs and maintenance reductions, to drive up short-term profits, thereby boosting a company's stock price and the wealth of its executives who hire it, at the expense of workers and safety measures. McKinsey collects millions of dollars advising government agencies that also regulate McKinsey's …
McKinsey & Company is the most prestigious consulting company in the world, earning billions of dollars in fees from major corporations and governments who turn to it to maximize their profits and enhance efficiency. McKinsey's vaunted statement of values asserts that its role is to make the world a better place, and its reputation for excellence and discretion attracts top talent from universities around the world. But what does it actually do?
In When McKinsey Comes to Town, two prizewinning investigative journalists have written a portrait of the company sharply at odds with its public image. Often McKinsey's advice boils down to major cost-cutting, including layoffs and maintenance reductions, to drive up short-term profits, thereby boosting a company's stock price and the wealth of its executives who hire it, at the expense of workers and safety measures. McKinsey collects millions of dollars advising government agencies that also regulate McKinsey's corporate clients. And the firm frequently advises competitors in the same industries, but denies that this presents any conflict of interest.
Shielded by NDAs, McKinsey has escaped public scrutiny despite its role in advising tobacco and vaping companies, purveyors of opioids, repressive governments, and oil companies. McKinsey helped insurance companies' boost their profits by making it incredibly difficult for accident victims to get payments; worked its U.S. government contacts to let Wall Street firms evade scrutiny; enabled corruption in developing countries such as South Africa; undermined health-care programs in states across the country. And much more.
An excellent book. Really sheds light on the decades-long effort by McKinsey to cost-cut and slash jobs in order to satiate shareholders and inflate executive bonuses. Everyone should read this. Chances are, if something bad has happened in business or politics, these guys were part of it.
The overall rating for this book is lower than it should be, leaving me to suspect foul play.
The book is a brutal, one-sided expose on all of McKinsey's wrongdoing. Walt Bogdanich lays out a case by case argument showing how McKinsey ignores its own values in pursuit of profit. Additionally, this profit pursuit is often at the expense of the clients it serves by frequently ignoring conflicts of interest. The book would be better with a less one-sided narrative but with that said, with the amount of despicable cases laid out in the book, it's no wonder the author hates McKinsey.
I would normally give this a 4/5, but the rating is significantly off from where it should be, so I'll give it a 5.
The overall rating for this book is lower than it should be, leaving me to suspect foul play.
The book is a brutal, one-sided expose on all of McKinsey's wrongdoing. Walt Bogdanich lays out a case by case argument showing how McKinsey ignores its own values in pursuit of profit. Additionally, this profit pursuit is often at the expense of the clients it serves by frequently ignoring conflicts of interest. The book would be better with a less one-sided narrative but with that said, with the amount of despicable cases laid out in the book, it's no wonder the author hates McKinsey.
I would normally give this a 4/5, but the rating is significantly off from where it should be, so I'll give it a 5.
