As a leading consulting firm, the name McKinsey has become synonymous to an elite lifeguard for business companies. However, in the past 15 years, McKinsey has drowned its reputation with involvements in scandals and by losing its competitive edge. Will McKinsey share a similar grim future of the mid-sized consultancy, Monitor Group, went bankrupt last year? Or will they remain afloat?
McKinsey was closely tied to the Enron scandal with Jeff Skilling being Enron’s CEO and a McKinsey veteran. Also,
“In 2010 Anil Kumar, a McKinsey consultant, [and in 2012], Rajat Gupta, a former McKinsey managing partner, admitted passing inside information to Raj Rajaratnam of Galleon, a hedge fund.”
Without a doubt, these scandals are detrimental to the company, especially when the success of McKinsey stems from their reputable integrity.
Other problems McKinsey faces consists of focusing solely on traditional industries such as oil and gas, and by offering little senior advice in a costly consulting package.
I believe that McKinsey will continue to be a strong, leading competitor in the consulting industry having been established since 1926. Since then, they have created a strong brand name to reassure the partnerships they have with numerous leading companies to stay in business. However, if they swim towards the Internet industry, such as Apple and Google, McKinsey will gain a larger target market and help rescue itself in the process.
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