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Why Your CEO Hired McKinsey Consultants

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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
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Text Comments (20)
Fu Fu (15 days 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 (15 days 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 (4 months ago)
I bought the book last year! *still have not finished it though
hurricane182 (5 months ago)
hmm why would you write a book about that..
Jordan F (6 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 (9 months ago)
يا حمران الخدود يا صفر العراقيب ما أدري وش تخرطون بس جاي عن طريق حمزة السالم
Ammar Manji (11 months 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.
Fu Fu (15 days ago)
Perhaps, but people like spending money, and don't trust themselves.
WG Consultants (3 months ago)
And you gathered this information how?
TheChuck624 (1 year ago)
They are young greedy assholes in summary.
Curtis I (1 year 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
Li Yon (9 months 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 (10 months 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
Frequency of Love (1 year ago)
+Curtis I I assume because research takes time regardless how experienced you are, besides he pointed out that since everyone hires them they receive insider information on top of that.
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
屁龙龟 (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.