Pre-AI, I always said McK is good at analysis, if you need complicated analysis done, hire a consulting firm.
If you need strategy, custom software, org design, etc. I think you should figure out the analysis that needs to be done, shoot that off to a consulting firm, and then make your decision.
IME, F500 execs are delegation machines. When they wake up every morning with 30 things to delegate, and 25 execs to delegate to, they hire 5 consulting teams. Whether you hire Mck, or Deloitte, or Accenture will only come down to:
1. Your personal relationships
2. Your company's policies on procurement
3. Your budget
in that order.
McK's "secret sauce" is that if you, the exec, don't like the powerpoint pages Mck put in front of you, 3 try-hard, insecure, ivy-league educated analysts will work 80 hours to make pages you do like. A sr. partner will take you to dinner. You'll get invited to conferences and summits and roundtables, and then next time you look for a job, it will be easier.
1. How do I build a datacenter
2. How is the industrial ceramic market structured, how do they perform
3. How does a changing environment impact life insurance
Strategy:
1. Should I build a datacenter
2. Should I invest in an industrial ceramics company
3. Should I divest my life insurance subsidiary
Specifically in the software world this would be "automate some esoteric ERP migration" or "build this data pipeline" vs. "how can we be more digital native" or "how do we integrate more AI into our company"
The problem is AI isn't CYA quality (yet) to your board.
It has to be some kind of higher level protection racket or something. Like if you hire the consultants there is some kind of kickbacks to the higherups or something with more steps involved where those who previously opposed it will now accept it if it's rubberstamped by the consultants.
Or perhaps those other players who are politically opposing this person are just dummies and don't know about this trick and actually trust the consultants. Or maybe it's a bit of a check, that you can't get anything and everything rubberstamped by the consultants, so it is some kind of sanity filter that the guy isn't proposing something that only benefits himself and screws everyone else.
And if it's the latter, then it is genuine value, a somewhat impartial second opinion. Basically there is a fog-of-war for all the execs regarding all the internal politics going on, it's not like they see through everything all the time and simply refuse to take the obviously correct decision for no reason.
My hunch is that in fact they won't agree with just any idea. There is a limit to how extreme the idea can get, though probably the filter is indeed weak. Still, without this filter, people would propose even wilder ideas that maximize their own expected payoff at the expense of other players, so just the fact that it has to be signed off by an external party is still enough information for the powerful decision makers that they are willing to fund their services.
Look at NEOM in Saudi.
McKinsey took 130M in a year to recommend a 500B investment in a 105 mile city in the desert. Sunk 50B and project was revised to take 50 years and 8 trillion.
It's impressive salesmanship how they were able to bilk such a large sum and support interim approvals for the regime to launder favors. I can see people wanting that "conflict."
Aside, there's a lot of stuff online re McKinsey. I suggest searching HN plus also search "Confessions of a McKinsey Whistleblower" in your fave web search engine.
My favourite was the LRB article "When McKinsey comes to town" -- see https://news.ycombinator.com/item?id=33869800
McKinsey challenges graduates to use AI chatbot in recruitment overhaul: https://www.ft.com/content/de7855f0-f586-4708-a8ed-f0458eb25...
And require a chatbot to be used that can be easily gamed by asking a model of how best to navigate it lol.
Implementing the past of AI practices is requesting something that will be easily outdone.
They look to package up something and sell it as long as they can.
AI solutions won't have enough of a shelf life, and the thought around AI is evolving too quickly.
Very happy to be wrong and learn from any information folks have otherwise.
Ultimately, why would a large company hire a consultancy company that is bad at tech and has a lot of bad processes to do their tech for them? Because the company itself is even worse and doesn't know what good looks like. If you are hiring McKinsey or Deloitte to do your tech, it's because you are completely lost and don't have the slightest clue how to become unlost. And you have no concept of what good looks like.
If you think the actual tech talent and systems are bad, when you work with these consulting firms, they are going to do the most heavy SAFe process you have ever seen. For me, the worst part is not the tech talent, but rather the most by-the-book, heavy-handed agile process possible. Everything moves way slower because of this "agile" rot, and there is almost no concept of doing proper ideation and prototyping work.
These legacy F500 companies try to do everything cheaply with consultants and offshoring, and yet it always ends up costing way more than it would if they just had proper in-house tech talent.
Many, many, many companies are very happy with the consulting firms they hire.
Of course, those are the consulting firms that aren't publicly traded and in the news all the time (for all the wrong reasons).
McKinsey has a weird structure where there are too many cooks in the kitchen.
Everybody there is reviewed on client impact, meaning it ends up being an everybody-for-themselves situation.
So as a developer you have little guidance (in fact, you're still being reviewed on client impact, even if you have 0 client exposure).
Then a (Senior) Partner comes in with this idea (that will get them a good review), and you jump on that. After all, it's all you can do to get a good review.
You work on it, and then the (Senior) Partner moves on. But it's not done. It's enough for the review, but continuing to work on it doesn't bring you anything, in fact, it will actually pull you down, as finishing the project doesn't give immediate client results.
So what does this mean? Most products of McKinsey are a grab-bag of raw ideas of leadership, implemented as a one-off, without a cohesive vision or even a long-term vision at all. It's all about the review cycle.
McKinsey is trying to do software like they do their other engagements. It doesn't work. You can't just do something for 6 months and then let it go. Software rots.
The fact that they laid off a good amount of (very good) software engineers in 2024 is a reflection on how they see software development.
And McKinsey's people, who go to other companies, take those ideas with them. Result: The UI of your project changes all the time, because everybody is looking at the short-term impact they have that gets them a good review, not what is best for the project in the long term.
And if the latter is the case, then that sort of stamps the case closed from the get-go...
an absolutely wild statement to 99.9% of the world
They're not very bright, most of them. But they're very hard workers and high achievers. They stay for the resume candy or the health care.
the top students from the top ten universities in the US produce... mostly not very bright people?
this is getting even stranger to the rest of us plebians. sometimes i am left in awe of how different my world is from some of you here
The top universities are not setup to mold intellectually rigorous and curious people. It's setup to make hard working, and increasingly sycophant men.
My lab mate is a former drug addict with two years of art school. Easily more intellectually curious than anyone I met at McKinsey.
Ideologically aligned if nothing else.
Well we can all at least imagine being some 4.0 Ivy League dude who only interacts with 4.0 Ivy League dudes. He’s not going to think that everyone he interacts with range from merely brilliant to the most studious-enlightened hardworking top of the morning fellow (or whatever adjectives to use). He’s gonna think that some of them are idiots. It’s only human.
worship is an extremely strong word for a one-sentence casual comment.
but yeah, by default i will file anyone with a 4.0 from a top 10 school in the "brighter than me" category. is that worship?
You can perfectly well believe that thinking that the echelons of academic success is a frictionless gold sieve is just a milquetoast belief. Believing that your beliefs are milquetoast are most often integral to said beliefs.
The As, then, are better at the game. Once you've become a TA and have to grade the exams, you realize how A grades are quite within reach:
For the professors, being an easy grader has almost no downsides. The contrary is a minefield of trouble. "A" students will "ask for clarifications" for any minor mistake, knowing professors will often throw them a point or two.
The exams are, typically, slight variations of problems from assignments. Often, they are the same.
Exams have no curveballs; problems or situations that you have never seen unless you did extra readings. No problem which to solve you must have read more or fully understood the core material.
The TA is primed to give 40% of a problem's points for free - just restate the problem in math and draw a picture and right out the door you get 2 out of 5 points.
Note that, as far as I can tell, this is not generally true for "hot" topics like CS or bio. These programs have so many eager kids that the material is hard. But then these fields get hard working, bright, kids that don't actually care about the material - they go to McK. Within ten years they've forgotten everything and are just consulting parrots.
What did I see at the university? Very hard working people. Very interesting research. Very shallow knowledge outside a narrow domain expertise.
These are the folks McKinsey hires... but these shallow thinkers are sent on 6 week projects for companies in industry they hadn't even heard before.
Once, no one in the team knew what product CompanyX sold... CompanyX is a a top tier multinational consumer product brand that routinely sponsors sports events, including TV ads.
Everyone would recognize it. Cartoons have made jokes about these product since the dawn of animation.
CompanyX makes is the premier manufacturer of these.
Think as pervasive and obvious as sneakers made by Nike, but it wasn't footwear.
And yet only one person in a team of a dozen consultants had ever heard of the company they'd been hired for.
Partners get 300-400k and senior partners get closer to 600-800
Ultimately AI may be a big threat to the sort of “advisory” work McKinsey historically focused on.
It reminds me of Lewis' "National Institute for Co-ordinated Experiments"
The health care is amazing, though. $30/mo for a family $900 deductible? Something like that. If you have a sick family member it's a no brainer.
Then I listened and we started to calculate:
- In the MCK Office from 0900 - 2300 on MO-FR
- In the MCK Office from 1000 - 1600/1700 on SA
- Often in the MCK Office from 1000-1400 on SU
Overall, yes: The amont was the double amount - but in the end working hours were also roughly the double.
I mean, it doesn't work for their consulting gigs either. There's a reason McKinsey has such a bad reputation.
It’s really about bypassing the existing power structure of the company. Competence of the work itself is a secondary objective. Most in-house initiatives can be slow rolled by management.
The fresh faced consultant with 2-3 steps to access the CEO neutralizes that. It seems grifty but is really exploiting bugs in corporate governance.
The current fad of firing the managers is a riff on this. Every jackass C-level is coming up with the novel idea of flattening.
Most of the times, the business decision has already been made long before McK is hired. It’s all about legitimizing that decision and making it happen.
You can also wield them as a weapon against internal competitors or opponents. Look up how they were used to kill off Cariad for example.
McKinsey was on a spree to become the best tech consulting company and brought a lot of great tech talent but the 2023 crisis made leadership turn 180 and simply ditch/ignore all the tech experts they brought to the firm.
All the expertise has left the firm and now they are more and more becoming another BS tech consulting firm, with strategy folks that don't even know that ML is AI advising clients on Enterprise AI transformation.
The tech initiative was a failure and Lilli's problem is just a symptom of it.
I wonder what was the experience at Bain and BCG
McKinsey requires hiring an external pen-testing company to launch even to a small group of coworkers.
I can forgive this kind of mistake on the part of the Lilli devs. A lot of things have to fail for an "agentic" security company to even find a public endpoint, much less start exploiting it.
That being said, the mistakes in here are brutal. Seems like close to 0 authz. Based on very outdated knowledge, my guess is a Sr. Partner pulled some strings to get Lilli to be publicly available. By that time, much/most/all of the original Lilli team had "rolled off" (gone to client projects) as McKinsey HEAVILY punishes working on internal projects.
So Lilli likely was staffed by people who couldn't get staffed elsewhere, didn't know the code, and didn't care. Internal work, for better or worse, is basically a half day.
This is a failure of McKinsey's culture around technology.