Business Breakdowns
Episode 52 McKinsey & Company: The First Management Consultants
Business Breakdowns

Episode 52: McKinsey & Company: The First Management Consultants

Business Breakdowns

Episode 52

McKinsey & Company: The First Management Consultants

Romeen Sheth is the President of Metasys Technologies. We dive deep into the management consulting business model, the history of the firm, and their underrated marketing strategy.

This episode is brought to you by:

Visible Alpha. The team at Visible Alpha built a platform to analyze consensus data and financial metrics on over 6,000 publicly traded companies. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns

Scribe. Scribe is the trusted transcription provider for the business and investing community. Scribe is designed to accurately transcribe messy, real-world audio and is unique in that it’s optimized for the complexities of enterprise audio, such as company and product names, currencies, accents and numbers. Visit kensho.com/breakdowns to learn more and unlock your free trial.

[00:02:35] - [First question] - What is McKinsey & Company and what management consulting looks like

[00:04:52] - Their project-based model and what’s being bought and sold when McKinsey makes a sale

[00:07:36] - The scale of the business and how profitable it is

[00:08:58] - How many projects McKinsey is running and how big of an opportunity management consulting is

[00:10:37] - McKinsey’s famous ownership model and how it works 

[00:12:49] - The history of McKinsey, who started it, and how it has evolved in modern times

[00:19:01] - How the firm has changed in the post-Bower era

[00:22:12] - McKinsey’s biggest competitors, their dynamics of practice groups, and vertical projects

[00:25:46] - How a CEO or top level manager decides which management consulting firm to do business with

[00:27:38] - The overview of a normal project for McKinsey, what they sell, and costs associated with it

[00:33:07] - The process of marketing and sales and their talent flywheel

[00:36:07] - The traditional side of their sales and marketing and the McKinsey Quarterly 

[00:37:44] - How someone can pitch business to McKinsey and their sales process

[00:39:47] - What makes the organization special and unique from a team or work perspective

[00:41:01] - Their talent model and how they find and develop their talent 

[00:45:14] - How their staffing model is unique and how they tie feedback into staffing 

[00:51:06] - Examples of the scandals that have happened and why

[00:55:24] - The biggest growth levers of the business looking forward

[01:02:03] - Things that could happen in a macro environment to aid McKinsey’s future

[01:03:52] - What could happen to make McKinsey a shell of its former self 

[01:05:38] - Where Romeen would direct people to go for further study; The Firm

[01:06:31] - Lessons for builders and investors when studying McKinsey’s story

McKinsey & Company: The First Management Consultants

Introduction

Jesse
This is Jesse Pujji, and today we're breaking down McKinsey & Company. The world's preeminent management consulting firm. Founded in the thick of the industrial revolution, McKinsey set about professionalizing the way businesses were managed. An accountant by trade, James McKinsey took inspiration from a range of well-established professions like engineers, doctors, and lawyers, to create a new category. Today, some 100 years later, management consultants are entrenched in every part global economy and McKinsey continues to lead the field. To break down the business I'm joined by Romeen Sheth, an McKinsey alum and the current President of Metasys Technologies. Please enjoy this business breakdown of McKinsey & Company.

Jesse
We have a really exciting business breakdown today with one of my good friends Romeen Sheth. And it's a particularly fun one, because we are breaking down McKinsey & Company, which is a company that both myself and Romeen worked for, and admire, I would say. So I'm really excited about this one. Welcome Romeen.

Access the full transcript
Sign in or register to view episode transcripts.

Contact

Get in touch at help@joincolossus.com