First of all, they reflect the fact that management is clueless. Mgmt contract consultancy to do their job. Second, they pay them very high fees which usually offset the cost-cutting mgmt do based on their recommendations. Third, mgmt pay them inordinate amounts of money to do the data collection, analyses and recommendations the inhouse people would do in far less time for much cheaper. Fourth, mgmt almost always lays off the best of their employees based on consultancy’s recommendation. Fifth, mgmt then takes on consultancy people for higher pay to replace people they just laid off. Regular employees then have to spend a lot of time and energy training people hired directly from consultancy because as a rule they have no clue not only about that particular job but the industry in general. So it’s basically some very, very strange leeching scheme, and absolutely no useful tool to improve company performance.
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There are many bad consultants, and there are many bad leaders who hire consultants to paper over their incompetence. But even a casual understanding of consulting would show the silliness of dismissing the entire profession under your logic.
Also, learn what “literally” means.
It’s called lazy executive management. Having a MBA from an Ivy School doesn’t make you smart , it just says you are a serious note taker and can take tests. It doesn’t teach critical thinking because I believe that only comes with real experience and frankly you either have it or you don’t. But McKinsey will never put skin in the game to achieve results, ie company doesn’t hit their goals and still keep market position then McK doesn’t get paid. If using McK advice causes adverse affects then they don’t get paid and have to pay for any losses or reputational damage. These folks are like weathermen and doctors… if they get things wrong , they still get to keep their jobs and salaries. But the rest of us suffer.
Just call it as you see it McKinsey folks and those from McKinsey that work here are just useless. They steal others ideas and sell them as their own. They can pontificate but can’t execute. They are just useless.
Maybe we should put this in our TTUS comments. 😂
It's fascinating to watch managers with decades of experience pay exorbitant fees to defer to recent business school grads who have never created or managed anything. If that same sn-t nosed kid was hired as an employee they wouldn't listen to a word of it, but give him a business card from Bain or McKinsey and he's treated like an oracle. It's just a grift, and an admission of incompetence by the management of the client organization.
If you watch season 3 of the show Fargo, that will explain to you what is going on here.
It's disappointing to see that when AC took the reigns from RD how fast he pivoted to McKinsey to do his job. Now most of the managing committee and their directs are McKinsey alumni. Long gone are the days when the bankers ran the bank.
Consultants are hatchet people and nothing more. Always have been and always will be.
Simply swapping out McKinsey people in CBB will not change the results or the desires and preferences of people and businesses to bank elsewhere, once you populate your ranks with non bankers, the people looking for those services will go elsewhere.
1,000% this. I will never understand this business model.