Do McKinsey and other consultants do anything useful?

[Good2Golf]

Lots of standing offers are in place for professional services for the Federal government. It's relatively simple to do call-ups as the qualifying competitive process is already done.

Not to say that there is no payrolling done...

Oh, I have no doubt that McKinsey is thoroughly qualified under a TSPS Solutions-based Supply Arrangement for Stream 2: Business consulting/change management services.

 

[daftandbarmy]

Because it's critically important to ensure that your personal chauffeur joins your business trips....

Crown corporation faces staff backlash over McKinsey contract, spending decisions​

BDC flew a chauffeur from Montreal to B.C. to drive the corporation's president around​

Multimillion-dollar contracts awarded by the Business Development Bank of Canada (BDC) to consulting firm McKinsey, coupled with some unusual spending choices — including a decision to fly a private chauffeur to B.C. to drive the Crown corporation's president around — are raising eyebrows within the BDC, sources say.

Current and former BDC employees say they're alarmed at some of the expenses incurred by the BDC under the leadership of president Isabelle Hudon.

Hudon, Canada's former ambassador to France, was appointed by Prime Minister Justin Trudeau's government in 2021 to head the Crown corporation. The BDC provides loans, venture capital and advisory services to small and medium-sized businesses across Canada.

https://www.cbc.ca/news/politics/business-development-bank-canada-hudon-mckinsey-1.6720914

 

[Halifax Tar]

Because it's critically important to ensure that your personal chauffeur joins your business trips....

Crown corporation faces staff backlash over McKinsey contract, spending decisions​

BDC flew a chauffeur from Montreal to B.C. to drive the corporation's president around​

Multimillion-dollar contracts awarded by the Business Development Bank of Canada (BDC) to consulting firm McKinsey, coupled with some unusual spending choices — including a decision to fly a private chauffeur to B.C. to drive the Crown corporation's president around — are raising eyebrows within the BDC, sources say.

Current and former BDC employees say they're alarmed at some of the expenses incurred by the BDC under the leadership of president Isabelle Hudon.

Hudon, Canada's former ambassador to France, was appointed by Prime Minister Justin Trudeau's government in 2021 to head the Crown corporation. The BDC provides loans, venture capital and advisory services to small and medium-sized businesses across Canada.

https://www.cbc.ca/news/politics/business-development-bank-canada-hudon-mckinsey-1.6720914

Seems reasonable.

 

[Retired AF Guy]

Peter Mansbridge on his show - "The Bridge" interviews Dominic Barton on his time as Canada's Ambassador to China and negotiations over the return of the two Michaels, plus his time at Mckinsley and his thoughts on the awarding of contracts to Mckinsley.

It can be found here.

Enjoy.

 

[RangerRay]

Peter Mansbridge on his show - "The Bridge" interviews Dominic Barton on his time as Canada's Ambassador to China and negotiations over the return of the two Michaels, plus his time at Mckinsley and his thoughts on the awarding of contracts to Mckinsley.

It can be found here.

Enjoy.

I seem to recall reading that Barton was telling anyone and everyone that he alone got the hostages released when it was actually the Biden Administration.

He is such a slimy, Beijing butt-snorkeling weasel. Only John McCallum looks worse.

 

[Good2Golf]

Seems reasonable.

Especially if the chauffeur abstained from $16 orange juice on the flight…

 

[Good2Golf]

I seem to recall reading that Barton was telling anyone and everyone that he alone got the hostages released when it was actually the Biden Administration.

You mean he said he was ‘The ArchitectTM’ of their releases?

 

[FSTO]

Peter Mansbridge on his show - "The Bridge" interviews Dominic Barton on his time as Canada's Ambassador to China and negotiations over the return of the two Michaels, plus his time at Mckinsley and his thoughts on the awarding of contracts to Mckinsley.

It can be found here.

Enjoy.

Listened to the podcast. This is email I sent to Mansbridge.

"The lady doth protest too much, methinks" - Dominic Barton​

I was out walking and listening to your interview with Mr Barton. Boy that man sure put his media training to good use as he deflected from your questions to toot his and the consulting world's horn.
Diversity in Saudi Arabia? Give me a break! Feeling sorry about the victims of Purdue Pharma? I wanted to throw up! The dealings with Communist China (like the spa week near the Uyghurs concentration camps) Really? Non disclosure agreements on Government Consulting contracts? Why?

Mr Barton may be a nice man to talk to but his moral compass is wildly off the mark. Thank god we finally woke up to the danger of the Chinese Communist Party because this man and his very smart (but gawd awfully stupid at times) cohorts would have made Canada vassals of the CCP if they were still in charge.

 

[Retired AF Guy]

Listened to the podcast. This is email I sent to Mansbridge.

"The lady doth protest too much, methinks" - Dominic Barton​

I was out walking and listening to your interview with Mr Barton. Boy that man sure put his media training to good use as he deflected from your questions to toot his and the consulting world's horn.
Diversity in Saudi Arabia? Give me a break! Feeling sorry about the victims of Purdue Pharma? I wanted to throw up! The dealings with Communist China (like the spa week near the Uyghurs concentration camps) Really? Non disclosure agreements on Government Consulting contracts? Why?

Mr Barton may be a nice man to talk to but his moral compass is wildly off the mark. Thank god we finally woke up to the danger of the Chinese Communist Party because this man and his very smart (but gawd awfully stupid at times) cohorts would have made Canada vassals of the CCP if they were still in charge.

Mansbridge Thursday episode is dedicated reading comments from his listeners. Might have to listen to see if mentions yours.

 

[FSTO]

^^
No such luck, I guess I was too critical of both the interviewer and interviewee.

The comment "I'm sorry about all the deaths caused by Purdue Pharma" makes me seethe with rage.

 

[RangerRay]

Thank god we finally woke up to the danger of the Chinese Communist Party because this man and his very smart (but gawd awfully stupid at times) cohorts would have made Canada vassals of the CCP if they were still in charge.

Too late.

 

[daftandbarmy]

As opposed to 'inside consultants'?

Does the government spend too much on outside consultants? | At Issue​

At Issue this week | The Liberals face mounting pressure over more than $100M spent on consulting contracts with McKinsey & Company as the opposition questions the relationship between Prime Minister Justin Trudeau and the firm's former head Dominic Barton. Plus, the tension between anti-Islamophobia representative Amira Elghawaby and Quebec politicians.

https://www.cbc.ca/player/play/2168663619769

 

[Kirkhill]

COMMENT

The consultancy racket can’t survive any more lawsuits​

Slew of scandals prove the culture of major firms is rotten to its core
MATTHEW LYNN1 October 2023 • 10:00am

How many lawsuits, scandals and bans will it take before the penny finally drops? It is becoming painfully obvious to everyone that there is something rotten in the culture of the consultancy industry.
We can carry on with new codes of conduct, investigations and suspensions. Or governments and the world’s major corporations can simply agree that enough is enough – and stop working with organisations that no longer look capable of meaningful reform.
It has been yet another bad week for the consultancy industry. McKinsey, the doyen of the sector, agreed to pay another $230m (£188m) to settle outstanding claims over its involvement in the US opioid epidemic. Taken together with earlier settlements, the firm has now paid a total of $870m for its work on painkillers.
Inevitably, the company admitted no liability or wrongdoing, and put out a statement insisting that its “past work was lawful”. Still, allegations surfaced during the case that its consultants advised manufacturers to “turbo-charge the sales engine” so we can all probably draw our own conclusions on whether McKinsey acted ethically or not.
Meanwhile, PwC has been in trouble in Australia over allegations that a partner who advised the government on tax changes passed the information on to a colleague who then used the information to tout for business among the American tech giants.

In 2021, McKinsey agreed to pay $573 million (£420 million) to settle investigations into its role in helping boost opioid sales CREDIT: Toby Talbot/AP
According to an independent report this week, partners overlooked “rule-breaking” because one partner was seen as a “rain-maker” while the culture of the organisation was “over-collegial”. PwC said that a review had found no staff outside Australia used any confidential information for commercial gain and that most staff outside of Australia did not know the information provided was confidential.
If we roll back the clock a few more months, it is not long since Bain & Co, another of the industry’s most prestigious names, was banned from working for the British Government for three years over its involvement in a scandal in South Africa. Although that was later reversed by the Government because Bain had cooperated with investigators and agreed to close monitoring, the company hardly emerged with much credit.
The list goes on and on. The major consultancies have more legal settlements than white boards and powerpoint presentations.
Of course, all the businesses involved are playing humble, and promising to “learn lessons” from the scandals. In Australia, PwC has promised to install an independent chairman. McKinsey has said it has put in place some “new policies and protocols” as well as investing more in “risk management”.
Seriously? An independent chairman? Some “protocols”? Is anyone falling for that kind of PR guff any more? How many more scandals do we need? The conclusion is surely clear enough. There is something rotten in the culture of the major consulting firms.
There are three big problems. First, there is a pattern of poor advice. The founders of the industry may have had some genuine insights into how to turn a local company into a global business, how to build a strong corporate culture, or how to create new product lines, but that was a long time in the past.
If anyone knows of a major company that has been built with the help of consultants, or turned around, they are keeping it well hidden. Instead, the major consultancies peddle stale cliches and second-hand ideas. Indeed, as the consultancy industry has boomed, innovation among major companies outside the tech sector has gone down. It is starting to look like there may be a connection.
Secondly, there is zero respect for clients. The industry has become shot through with conflicts of interest, it routinely overcharges, and it seems to feel no compunction about selling unnecessary services and equipment. It has lost the sense of professionalism that means the client should always be more important than the consultant, and once that has disappeared it is impossible to recover.
And lastly, short term profits are prioritised over everything else. Genuinely independent, expert businesses might accept that there were times when clients needed more advice, and times when they needed less, and adjust their workloads accordingly. But that is not what happens any more.

Instead, fee maximisation is the only thing that matters, with rainmakers indulged if they can bring in a few more lucrative contracts regardless of whether the work has any quality or is even actually required.
We have seen lots of reforms and promises of change from the consultancy industry. Pledges to clean up its act come and go, along with the slogans, fads and catchphrases. And yet as the events of the last week showed all over again, the problem is getting worse instead of better.
This is a major global industry, with worldwide revenues estimated at $250bn. A lot of money is at stake. And yet it has also become painfully clear that it has turned into a racket, serving nobody except its well rewarded staff and partners. It is no longer capable of change.
There is only one real solution. Governments and all the major corporations that make up the Fortune 500 should impose a blanket ban on all the major consultancy firms for at least five years. Simply stop working within them under any circumstances.
True, there are some talented and hard-working people within them, along with all the fast-talking charlatans, and they might lose their jobs. But they could easily find work elsewhere. The businesses themselves would close down, and over time new, smaller organisations might emerge that combined high-level expertise with strong ethical standards that could provide genuinely useful advice.
The bloated giants of the consultancy industry, however, would disappear. They would not be missed. In reality, they have become a stain on global corporate culture. It might seem harsh. But we are not going to end the racket any other way.

The consultancy racket can’t survive any more lawsuits

Slew of scandals prove the culture of major firms is rotten to its core

www.telegraph.co.uk

$5000 and you too can have my opinion on whether Canada should buy Korean subs. Sign this disclaimer right here. Just remember, it is your decision. I could be wrong.

 

[daftandbarmy]

The consultancy racket can’t survive any more lawsuits

Slew of scandals prove the culture of major firms is rotten to its core

www.telegraph.co.uk

$5000 and you too can have my opinion on whether Canada should buy Korean subs. Sign this disclaimer right here. Just remember, it is your decision. I could be wrong.

Regardless, business is booming

Management and Strategy Consulting​

Industry Outlook

The coronavirus pandemic had a substantial impact on the management and strategy consulting industry in 2020. Revenue was expected to drop in the management consulting industry by nearly 8 percent in that year alone, according to the research group IBISWorld. In 2021, the rollout of the COVID-19 vaccine was expected to rebuild the economy, and with businesses reopening, demand is expected to resume growing for management and strategy consulting services. Industry revenue growth will accelerate through 2026, due to the projected expansion of business budgets, which will enable companies to increase their spending on management and strategy consulting services. As of January 2021, there were approximately 865,055 management consulting businesses, with nearly 1.7 million employees, in the U.S.

Management and strategy consultants will continue to have good job opportunities. The Department of Labor forecasts 14 percent employment growth through 2028, which is much faster than the average for all other occupations. Organizations in various industries will always seek ways to improve their business operations for greater efficiency and increased revenue. As the economy strengthens, markets become increasingly competitive, which, in turn, creates demand for management and strategy consultants for their expertise in resource management. Demand for consultants will be especially strong in the health care industry. As the DOL describes it, “this industry segment is experiencing higher costs because of an aging population…[also] more management analysts will be needed to help navigate the regulatory environment within health insurance.” Consultants who specialize in information technology will also have good job opportunities in the near future. Companies will need help with improving their I.T. systems and ensuring they are up to date. Government agencies will also need management and strategy consultants to help improve efficiency and reduce spending. Consultants who specialize in operations and financial advisory will continue to be in high demand as well.

Management and strategy consulting:Industry Outlook - Vault

Management and strategy consulting:Industry Outlook

vault.com

 

[ArmyRick]

More tone deaf, poor optics of the current government (I realize past governments have done it but I am focusing on here and now).

This is largely wasteful. Spend $100, 150, 200 million, etc on outside consultation or other services? Then damn well claw back spending on government bureaucracy and employees. Don't like it? Money has its limits.

 

[Navy_Pete]

More tone deaf, poor optics of the current government (I realize past governments have done it but I am focusing on here and now).

This is largely wasteful. Spend $100, 150, 200 million, etc on outside consultation or other services? Then damn well claw back spending on government bureaucracy and employees. Don't like it? Money has its limits.

Or, alternately, listen to your internal expertise to start with, and don't get an outside consulation to tell you things you already know. A lot of them start with interviewing public servants to figure out the context.

I think it's useful for things where the GoC is looking to develop new policies and bring in SMEs; what drives me nuts is when they want essentially a second opinion. Sometimes that's fishing for a yes, so pretty funny when both internal and external experts agree that something is a garbage idea, and the 'decision makers' do it anyway. Would be faster and cheaper to just ignore the internal expertise openly the first time, vice pretending they were open to facts and logic.

 

[Kirkhill]

Or, alternately, listen to your internal expertise to start with, and don't get an outside consulation to tell you things you already know. A lot of them start with interviewing public servants to figure out the context.

Any decent consultant will always include talking to the people with the problems to understand the context. The whole point of hiring a consultant is to get another set of eyes on the project. Often the manager has got too many competing demands from within the organization and is having difficulty meeting all of them. They then start asking themselves "Am I seeing this right? Is there something I am missing?" And then, if their reality is confirmed and a course of action created and decided they then need ammunition to sell that course of action to the organization.

People moan about politicians and use the word politician as an epithet about their bosses. Reality is that everything is political. Everything is a transaction. As a salesman I spent as much time selling my clients to my company as I did selling my company to my clients. As a manager it was a case of selling my department's people to the company while selling the company to the department.

In military terms it comes down to that bit at the end of the Ops O when you ask for questions and dread somebody asking "Do you believe this will work?"

 

[Brad Sallows]

It's a puzzlement that anyone takes for granted that their own people with institutional knowledge are not a better source of information and analysis than someone who briefly drops in and is assumed to be able to identify and absorb all the relevant information that the enterprise has.

 

[daftandbarmy]

It's a puzzlement that anyone takes for granted that their own people with institutional knowledge are not a better source of information and analysis than someone who briefly drops in and is assumed to be able to identify and absorb all the relevant information that the enterprise has.

You'd be surprised what kind of self-serving/ non-objective junk some people will produce when they think that their bosses are trying to change something, especially if the changes are intended to pull organizations into line with clearly articulated, reasonable corporate policies

 

[FJAG]

It's a puzzlement that anyone takes for granted that their own people with institutional knowledge are not a better source of information and analysis than someone who briefly drops in and is assumed to be able to identify and absorb all the relevant information that the enterprise has.

Its because every so often the institutional people cannot see the forest for the trees and do not realize that they can't.

That and the natural tendency for any bureaucracy to fight to retain the status quo and to resist change - and thereby not to generate any novel initiatives internally.

Sir Humphrey Appleby: With respect, Prime Minister, I think that the Education Department will react with some caution to your rather novel proposal.

Prime Minister James Hacker: You mean they'll block it.

Sir Humphrey: I mean they will give it the most serious and urgent consideration, and insist on a thorough and rigorous examination of all the proposals, allied to a detailed feasibility study and budget analysis before producing a consultative document for consideration by all interested bodies and seeking comments and recommendations to be included in a brief for a series of working parties who will produce individual studies which will provide the background for a more wide-ranging document considering whether or not the proposal should be taken forward to the next stage.

James Hacker: You mean they'll block it.

Sir Humphrey: Yes.

"Yes, Prime Minister: The National Education Service” (BBC, 1988; Series 2 episode 7)