When McKinsey Comes to Town exposes the controversial practices of the influential consulting firm. Readers found the book eye-opening, revealing McKinsey's involvement in various scandals and ethical dilemmas. While some praised the investigative journalism, others felt it lacked nuance. The book highlights McKinsey's focus on profit maximization, often at the expense of workers and public welfare. Many reviewers were shocked by the firm's far-reaching influence and conflicts of interest. Overall, the book provides a critical look at McKinsey's impact on businesses and governments worldwide.
McKinsey's global influence extends far beyond traditional consulting
The firm's pursuit of profits often conflicts with ethical considerations
McKinsey played a significant role in widening income inequality
The firm's work with authoritarian regimes raises serious ethical questions
McKinsey's involvement in the opioid crisis reveals a disregard for public health
The firm's culture of secrecy shields it from accountability
McKinsey's advice has contributed to environmental degradation
The firm's role in government contracts creates potential conflicts of interest
McKinsey's impact on healthcare systems has been controversial
The firm's influence on Wall Street contributed to financial instability
"To those convinced that a secretive cabal controls the world, the usual suspects are Illuminati, Lizard People, or 'globalists.' They are wrong, naturally. There is no secret society shaping every major decision and determining the direction of human history. There is, however, McKinsey & Company."
McKinsey's reach is vast. The firm has consulted for a wide array of clients, including:
90% of the world's 100 largest corporations
Governments and public institutions in over 130 countries
Numerous state-owned enterprises in China and other nations
The firm's influence is multifaceted. McKinsey shapes policy, business practices, and even societal norms through:
Advising top executives and government officials
Publishing influential reports and articles
Placing former consultants in leadership positions across industries and governments
This pervasive influence allows McKinsey to shape global trends and decision-making processes, often without public scrutiny or accountability.
"If you want to do ethical work, if that's a priority, then you have to be willing to turn down profitable opportunities. It was never clear to me that McKinsey was ever willing to do that."
Profit over principles. McKinsey has repeatedly chosen lucrative contracts over ethical considerations:
Advising tobacco companies despite known health risks
Helping pharmaceutical companies boost opioid sales amid an addiction crisis
Working with authoritarian regimes known for human rights abuses
Ethical dilemmas are systemic. The firm's structure and culture contribute to ethical lapses:
Decentralized decision-making allows partners to take on controversial clients
The emphasis on revenue growth incentivizes accepting ethically questionable work
The firm's culture of secrecy makes it difficult to hold consultants accountable
These factors combine to create an environment where ethical considerations are often secondary to financial gain, leading to decisions that can have far-reaching negative consequences.
"McKinsey was telling Allstate to essentially declare war on a sizable proportion of its policyholders. One slide proclaimed, 'Winning will be a zero sum game.' In other words, Allstate's gains come at the expense of its policyholders."
Promoting shareholder primacy. McKinsey has consistently advised clients to prioritize shareholder value over other stakeholders:
Recommending cost-cutting measures that lead to mass layoffs
Advising on executive compensation packages that widen the pay gap
Promoting outsourcing and offshoring strategies that reduce domestic jobs
Systemic impact on inequality. The firm's influence extends beyond individual companies:
Advising governments on policies that favor business interests over workers
Promoting financial practices that concentrate wealth at the top
Shaping business education to prioritize short-term profits over long-term stability
These actions have contributed to a widening wealth gap and the erosion of middle-class economic security in many countries where McKinsey operates.
"McKinsey was helping ensure the viability of a brutal, authoritarian regime."
Controversial clients. McKinsey has worked with numerous authoritarian governments and state-owned enterprises:
Saudi Arabia's government and state-owned companies
Russian state-owned enterprises under sanctions
Chinese government agencies and state-owned firms
Enabling repression. The firm's work has sometimes directly supported oppressive practices:
Advising on economic policies that strengthen authoritarian control
Providing technological expertise that can be used for surveillance
Helping regimes improve their international image despite human rights abuses
These engagements raise serious questions about McKinsey's role in legitimizing and empowering authoritarian governments, potentially at the expense of human rights and democratic values.
"Through a series of efforts, we secured the future of the crucial OxyContin franchise."
Fueling the epidemic. McKinsey played a significant role in exacerbating the opioid crisis:
Advising Purdue Pharma on strategies to boost OxyContin sales
Recommending tactics to circumvent regulations and public health concerns
Proposing programs to "turbocharge" opioid sales even as addiction rates soared
Conflict of interest. The firm simultaneously advised opioid manufacturers and regulators:
Consulting for the FDA while working for pharmaceutical companies
Potentially influencing regulatory decisions in favor of clients
This dual role allowed McKinsey to profit from both sides of the opioid crisis, demonstrating a prioritization of financial gain over public health concerns.
"McKinsey & Company operates with a level of secrecy that would impress the CIA."
Opacity by design. McKinsey's culture of secrecy is deeply ingrained:
Strict confidentiality agreements for employees and clients
Reluctance to disclose client lists or details of engagements
Internal policies discouraging public discussion of work
Consequences of secrecy. This lack of transparency has significant implications:
Difficulty in holding the firm accountable for negative outcomes
Limited public scrutiny of potentially controversial work
Ability to work for competing clients without disclosure
The firm's secretive nature allows it to avoid public scrutiny and potential backlash, even when its work has far-reaching societal impacts.
"Think about it. Is there a worse client to serve than those directly responsible for putting us on the incomprehensible fast-track to planetary omnicide?"
Conflicting interests. McKinsey's work often contradicts its stated environmental commitments:
Advising major fossil fuel companies on expansion strategies
Helping coal mining companies increase production
Promoting economic policies that prioritize growth over sustainability
Greenwashing concerns. The firm's environmental initiatives are often at odds with its client work:
Publicly advocating for climate action while privately advising polluters
Promoting sustainability to attract young talent while continuing work with major emitters
Developing "green" strategies for clients that amount to superficial changes
These actions reveal a disconnect between McKinsey's public stance on environmental issues and its actual client work, potentially slowing progress on addressing climate change.
"McKinsey was being asked to help sort out roughly the same problem the NHS faced when it first brought in the firm nearly half a century earlier and to reverse many of the provisions of the 2012 law that it had helped to craft."
Revolving door. McKinsey benefits from a close relationship with government:
Former consultants often take high-level government positions
Government officials join McKinsey after leaving public service
The firm gains insider knowledge and influence through these connections
Dual roles. McKinsey frequently advises both regulators and the regulated:
Consulting for government agencies while working for companies they oversee
Potentially influencing policies that benefit private sector clients
Profiting from both creating and solving problems in public sector management
This intertwining of public and private interests raises questions about the firm's objectivity and the potential for conflicts of interest in shaping public policy.
"McKinsey was telling Allstate to essentially declare war on a sizable proportion of its policyholders."
Profit-driven healthcare. McKinsey has promoted strategies that prioritize financial outcomes over patient care:
Advising insurance companies on tactics to minimize payouts
Recommending cost-cutting measures in hospitals that can affect quality of care
Promoting privatization of public health services
Systemic changes. The firm's influence extends to entire healthcare systems:
Advising governments on healthcare reforms that increase private sector involvement
Promoting efficiency measures that can lead to reduced access to care
Shaping pharmaceutical strategies that prioritize profitability over affordability
These actions have contributed to the commercialization of healthcare in many countries, often at the expense of equitable access and patient outcomes.
"Securitization was based on the premise that a fool was born every minute. Globalization meant that there was a global landscape on which they could search for those fools—and they found them everywhere."
Promoting risky practices. McKinsey advocated for financial innovations that increased systemic risk:
Championing the widespread adoption of securitization
Advising on the creation of complex financial instruments
Promoting deregulation of financial markets
Consequences of advice. The firm's recommendations contributed to financial instability:
Securitization played a central role in the 2008 financial crisis
Complex financial products obscured risks and contributed to market volatility
Deregulation removed safeguards that could have mitigated financial crises
McKinsey's influence on Wall Street helped shape a financial system prioritizing short-term profits over long-term stability, contributing to economic vulnerabilities that affected millions of people globally.