HomeNews & PoliticsRelated VideosMore From: TheStreet: Investing Strategies

Why Your CEO Hired McKinsey Consultants

403 ratings | 128120 views
CEOs hire McKinsey consultants for their "enlightenment" and to avoid accountability, says Duff McDonald, Author of The Firm - The Story of McKinsey. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Category: News & Politics
Get embed code!
Text Comments (31)
washfi (15 days ago)
these are assole
Vikas Kumar (1 month ago)
Why they hire consultants because they have provided services to clients from different domains and different geographies which gives them unique advantage of coming across so many different problems of different magnitudes. Strategies given by these consultants would never work in 100% cases but what CEOs really want is a strategy for solving their problems and issues. Then you have got board on top of it to decide whether to go with suggested strategy or not and as he mentioned these consultants have kept them very safe by not taking credit in success as in failures no will blame them . Over the years consulting firms especially MBB have realised that it's just not the suggestion which will work but rather then implementation will really help in longer term.
RUSHIL JOHAR (2 months ago)
This industry sounds doubtful. But They look at problems from different point of view .. which is great. I've never heard that consulting companies did this did that . Good deals etc etc. Where are their genius work.
Gerard Irvine (1 month ago)
Consulting is basically hiring people to think for you. People within the business are too busy running it; to think strategic direction, management restructure, and a heap of other problems..
Derrick Landers (1 month ago)
RUSHIL JOHAR That's the whole point...they don't take credit for their solutions, so you'll never know if that company's restructuring was orchestrated in-house or not.
RUSHIL JOHAR (2 months ago)
Came here after Consulting 101
Heyward Dai (2 months ago)
see how he managed to talk for 4 minutes without saying anything?
Moses Gunn (2 months ago)
The reason companies tend to go with consultants ideas more than their own people is because they pay so much money for those ideas they feel it must be used or its just wasted money (Go figure). Even if the idea is nothing more than a regurgitation of your own people. Its sort of like your wife telling you to buy that shirt then you buy a high priced escort who says the exact same thing. You may tell your wife that you can pick out your own clothes but drool over everything that ho just said.
xgeneric99 (2 months ago)
MC is like advertising. There is an ENORMOUS amount of ego stroking going on.
Momentum Marketing Tips (2 months ago)
Great video
Fu Fu (3 months ago)
Executive genius is bringing groups into alignment for desired results, why not extend that money-craft to management? Also, that is the path of least resistance, which all mankind is prone to follow.
Fu Fu (3 months ago)
Ultimately, it may well be more minds at work is better than one/ a few, even if they are inexperienced. Surely this has been studied to death. Also, it could be the blind leading the blind, for a CEO might be as unable to lead as they. Indeed, if an org is large enough it may be impossible for the "leader" to really understand it. This is very true in science or technology where CEOs, Military, Gov etc are "leading" projects they have no knowledge on at all. Also also also, responsibility and potential loss can lead to cold feet. blah blah blah
nTo (7 months ago)
I bought the book last year! *still have not finished it though
David Packer (1 month ago)
nTo you were conned it is (the book) just a way to generate extra revenue
hurricane182 (8 months ago)
hmm why would you write a book about that..
David Packer (1 month ago)
hurricane182 to generate revenue you'll never finish the book.
Jordan F (9 months ago)
They hired a consultant because the current ownership group is selling the company and you are likely going to be fired.
اليقين بانتصار المسلمين (1 year ago)
يا حمران الخدود يا صفر العراقيب ما أدري وش تخرطون بس جاي عن طريق حمزة السالم
Ammar Manji (1 year ago)
Hi
klsar1 (1 year ago)
Consultants are people who take your hand, point to your watch, and tell you what time it is. But they will need 100 powerpoint slides to tell you this, charging you 10 grand per slide.
masayako (2 months ago)
klsar1 you got it, man. They share with you what you already know, but not dare to rock the boat.
Fu Fu (3 months ago)
Perhaps, but people like spending money, and don't trust themselves.
WG Consultants (6 months ago)
And you gathered this information how?
TheChuck624 (1 year ago)
They are young greedy assholes in summary.
Curtis I (2 years ago)
I don't understanding the consulting industry why would anyone pay thousands for a group of fresh grads with no finance experience to tell them things that they already know, most of them are already in the industry for like 20+ years. Yet listen to someone who just took a bunch of liberal arts classes in university with fancy powerpoints. The ones that are actually presenting to the clients, only use the findings and data from the analyst (basically a college guy). He/She is not speaking from their own experience
W Clark (1 month ago)
Bottom line is that at the end of the day the paradigm shifting upside synergies prioritize efficiencies incentivizing win-win upsides via organic multi-variate blue skying.
Li Yon (1 year ago)
Consultants basically help you look at things through the lens of a different perspective. Sometimes CEOs already know the answer to their problems, but before they do, they need a group of brain power to help them structure their thoughts, organize frameworks to tackle their challenges appropriately. Fresh eyes, 2nd opinion, insider information, etc.
Ronildo De Abreu (1 year ago)
Curtis I
Noah Kimmel (1 year ago)
the implication is that there is no value added thought. McKinsey, as pure strategy may be harder to justify relative to an IT consultant for instance, but nevertheless, consultants are helpful for a few things: 1) fresh eyes on a problem 2) short term staff augmentation - sometimes companies don't have the people to do the work and need help. Hiring is a long and expensive process, and firing people after a project isn't good for morale. In some cases, company location may make it impossible to find enough of the needed skillset in the local job market. 3) niche experience - while there may be experience on the client side, there is also experience on the consultancy side, either individually or in past project references. 4) implementation guidance or ownership - think a new software tool and the change management associated 5) shared accountability and "independent" thought
JudgeyJudgeyable (2 years ago)
when the author said that Mckinsey's business is mostly repeat business, it reminded me of the show House of Lies where every episode they would emphasize making repeat business
JudgeyJudgeyable (2 years ago)
when the author said that Mckinsey's business is mostly repeat business, it reminded me of the show House of Lies where every episode they would emphasize making repeat business
Koopa0209 Yang (3 years ago)
说得好。 我操
dbstube (4 years ago)
..."85% of their business is repeat business & they develop relationships with each individual client"-Wow, that really says alot for 'relationship selling' and retention in addition to the main point in the overview of his book.