The Firm: The Story of McKinsey and Its Secret Influence on American Business (48 page)

7.
John Merwin,
Forbes
, October 19, 1987.

8.
John A. Byrne,
BusinessWeek
, September 20, 1993.

9.
Lou Gerstner,
Who Says Elephants Can’t Dance? How I Turned Around IBM
(New York: HarperCollins, 2002), 3.

10.
Bill Matassoni, interview by author, 2010.

11.
Michelle Jarrard, interview by author, January 25, 2011.

12.
Alistair Osborne, “Prudential’s McKinsey Bill Annoys Investors,”
Telegraph
, June 6, 2010.

13.
Tom Peters, interview by author, July 27, 2010.

14.
Ian Davis, interview by author, June 16, 2011.

15.
Kunal N. Talgeri, “The McKinsey Way,”
Outlook Business
, May 16, 2009.

16.
Brooke Masters, James Fontanella-Khan, and Justin Baer, “McKinsey Partner’s Arrest Casts Shadow,”
Financial Times
, October 22, 2009.

17.
http://www.forbes.com/lists/2011/21/private-companies-11_McKinsey-Company_IPPW.html
.

18.
Duff McDonald, “Rajat Gupta: Touched by Scandal,”
Fortune
, October 1, 2010.

19.
Ibid.

20.
http://friendsofrajat.com/read-the-open-letter/
.

21.
http://dealbook.nytimes.com/2012/04/19/insider-trading-investigation-ensnares-goldman-sachs-executive/?nl=business&emc=edit_dlbkam_20120420
.

22.
Suzanna Andrews, “How Rajat Gupta Came Undone,”
BusinessWeek
, May 19, 2011.

23.
Ian Davis, interview by author, June 6, 2011.

24.
Suketu Mehta, “The Outsider,”
Newsweek
, October 23, 2011.

25.
Peter Lattman and Azam Ahmed, “Rajat Gupta Convicted of Insider Trading,”
New York Times
, June 15, 2012.

26.
Michelle Jarrard, interview by author, January 25, 2011.

27.
Ian Davis, interview by author, June 6, 2011.

28.
Walter Kiechel III,
The Lords of Strategy
(Boston: Harvard Business Press, 2010), 11.

29.
Andrew Hill, “Inside McKinsey,”
FT Magazine
, November 25, 2011.

30.
Peter Grauer, interview by author, July 26, 2011.

1.
Walter Kiechel III,
The Lords of Strategy
(Boston: Harvard Business Press, 2010), 2.

2.
Nicholas Lemann, “The Kids in the Conference Room,”
New Yorker
, October 18, 1999.

3.
Bill MacCormack, interview by author, May 7, 2010.

4.
Stefan Stern, “Strategy Consultants Need Some New Ideas,”
Financial Times
, April 5, 2010.

5.
Clay Deutsch, interview by author, March 5, 2011.

6.
Gary Hamel,
The Future of Management
(Cambridge: Harvard Business School Press, 2007), 6.

7.
George David Smith, John T. Seaman Jr., and Morgan Witzel,
A History of The Firm
(New York: McKinsey & Company, 2010), 444.

Abernathy, William J.,
124

Accenture,
199
,
328

accountability,
124
,
186
,
244

accounting/accountants,
12
,
13
–14,
15
,
21
–22,
23
,
38
–39,
199
,
202
–3,
246
–47.
See also
auditing/auditors;
specific firm

Achieving Excellence in Retail Banking
(McKinsey),
156

activity value analysis (AVA),
207

A.D. Little,
205

advice-on-retainer system,
31

Advised and Sold: McKinsey & Co—The Big Bluff of the Management Consultant
(Leif),
214

AIG,
258
,
293
–94,
307
,
317

Air Canada,
117

Air Force, U.S.,
93

Air France,
79

Air Liberté,
256

Air Littoral,
256

airline industry,
255
–57

Alitalia,
102
–3

AlixPartners,
294

Allen, Mike,
76
,
115

Allen, Robert,
177

Allstate,
257
–59,
293

alumni, McKinsey: board memberships of,
305

as CEOs,
192
,
231
–32,
281
–82

as clients,
84
,
303
–7

cronyism and,
307

and culture of greed at McKinsey,
208
–9

as double-edged diaspora,
303
–7

in England,
285
–86

financial services industry and,
231
–32,
286

Gupta insider-trading case and,
319

as Harvard alumni,
192

influence of,
231
–32,
305

institutionalization of,
84

Kumar inside-trading case and,
308

as McKinsey competitors,
205
–6

and McKinsey in the future,
327
,
329
,
332

McKinsey reputation and,
238

and McKinsey as success,
190
–92

number of,
84
,
192
,
222
,
303

questionable behavior by,
296

as Rotten Corps,
84

scrutiny of,
307

specialness of,
7
–8

who were forced to leave,
304
–5.
See also specific person

Amazon.com,
11
,
182
,
264

Ambani, Mukesh,
314

AMD,
309
,
310

America West Airlines,
233

American Airlines,
53
,
311

American Association of University Instructors in Accounting,
14

American Automotive,
52

American Business, 1920–2000: How It Worked
(McCraw),
17

American Business
magazine,
35

American Century,
15
–18

The American Challenge
(Servan-Schreiber),
78

American Cotton,
17

American Express (Amex),
7
,
182
,
207
,
233
,
303
,
304
,
327

American Management Association,
29

American management technique: McKinsey contribution to,
3

American Red Cross,
64

American Tobacco,
17

Ames, Chuck,
232

Amgen,
220

analysis,
15
,
113
,
143
–44,
226
–27,
232
.
See also
knowledge-building

“Anchorage perspective,”
163

Andersen Consulting,
199
,
200
,
203
,
227
,
249

Antonini, Joseph,
254

AOL,
253

AOM,
256

Aoshima, Yukio,
164

Apax Partners,
232
,
305

Apple Computer,
111
,
168
,
182
,
327
,
328

Applied Digital Solutions,
265

Armour & Company,
18
,
24

Arrow Electric,
303

Arthur Andersen,
100
,
138
,
199
–200,
239
,
250
,
309
,
327

Arthur, Brian,
217

Arthur D. Little,
26
,
74
,
88
,
138
,
201

Ashland Oil,
303

Ashley, Richard,
225

Asia,
300
,
301
,
335
.
See also specific nation

associates, McKinsey,
121
,
208
,
235
,
269
–70,
273
,
275

Association of Consulting Management Engineers,
71

AT&T,
6
,
17
,
174
,
177
,
178
–79,
182
,
183
,
191
,
197
,
198
,
327

Atari,
154

Athos, Anthony,
149

Atomic Energy Commission, U.S.,
68
,
78

auditing/auditors,
31
,
202
–3.
See also
accounting/accountants

Auguste, Byron,
169

Austrian Airlines,
255
–56

automobile industry: in Japan,
104
,
163
.
See also specific person or corporation

Axelrod, Beth,
248

Ayer, Doug,
51
–52,
62
,
77

Bacon & Davis,
26

Bain & Company: BCG relationship to,
110

best place to work surveys and,
295
,
324

conflict of interest concerns and,
90

founding of,
90

Iacocca/Chrysler hiring of,
190

knowledge-building at,
217

as McKinsey competitor,
111
,
115
,
138
,
140
,
142
,
167
,
197
,
226
,
264
,
295

Time Inc. as client of,
281

Bain, Bill,
111
,
199

Bain Capital,
111
–12

Baker, James,
241

Bales, Carter,
70
–72,
73
,
200
–201,
276
,
305

Balloun, Jim,
205

Bank of America,
177
,
189

Bank of England,
76
,
78

Bank of Ireland,
78

Bank One,
185
–86,
287

banking industry: consolidation in,
166
,
253

credit demands on,
289

as early clients of McKinsey,
28
–29

“global profit pools” of,
302
–3

influence of McKinsey on,
166
,
232
,
286
,
288
–94,
332

in Korea,
301

McKinsey failures/missteps with,
292
–94

McKinsey fees for,
204
,
286
,
292
,
293

signs of impending failures of,
231

and specialization-generalization debate,
121
,
145

Swedish,
252
.
See also
investment banking;
specific person or bank

Bantam Books,
153

bar codes,
115

Barnard, Chester,
55

Barrington Associates,
42

Barron’s
magazine,
281

Barton, Dominic: Asian interests of,
300
,
301
,
335

capitalism views of,
301
–2

clients of,
301

Davis and,
299
,
300

earlier managing directors compared to,
299
–300,
301

elections as managing director of,
297
,
299
–300,
301
,
324

Gupta case and,
317

Gupta compared with,
301

knowledge building and,
302
,
303

and Kumar as inside-trader,
307
–8

Mer meeting with,
323
–24

and partnership morale,
321

personal and professional background of,
300
,
301

writings of,
297
,
301
–2

BASF,
79

Basic Training Guide
(McKinsey & Co.),
49
–51

BBC,
180
–81

Beame, Abe,
71

Bear Stearns,
287

Bechtel Group,
220

Bedaux Company,
26
–27

Bell Labs,
170
,
193
–94,
195
,
197
,
215
–16

Ben & Jerry’s,
106

Benmosche, Robert,
258
,
294

Bennett, David,
286

Bennett, Jim,
117
,
146
,
147
,
153

Berardinelli, David,
258
,
259

Bergen, Harold,
53

Bertelsmann,
161

Bessemer Securities,
134

best place to work surveys,
295
,
324

“best practices,”
5
,
283

Bezos, Jeff,
11

Bharara, Preet,
318

Bhatia, Sabeer,
314

Biglari, Hamid,
232

Birt, John,
181

Black & Decker,
110

Blackwell, Lord,
285

Blankfein, Lloyd,
312
,
315

Bleeke, Joel,
225

Bloomberg LP,
323

Bloomberg, Michael,
283

Bok, Derek,
82
–83

Bolshoi Theater,
228