Obermeyer, Michael, 314
Ocampo, Juan, 145
off-balance-sheet financing: banking industry and, 288
at Enron, 243, 244, 245, 247, 249
office managers, McKinsey, 121, 122, 128
Ogilvy, David, 62
O’Hanley, Ron, 175, 305
Ohmae, Kenichi, 136, 140, 147, 148, 161–64
oil industry, 156
OnVance, 236
opera performance: by McKinsey partners, 208
Oppenheim, Jeremy, 248
The Organization Man (Whyte), 64
Organizational Health Index (OHI), McKinsey, 302
organizational structure; strategy and, 141–42
Orr, Gordon, 227–28, 229–30
O’Shea, James, 260–61
Otero, Carolina, 181
Our Efficient Life: The Dictatorship of the Economy and Its Consequences (Kurjuweit), 213
outsourcing, 237, 309
Pan American World Airways, 65
Paramount Pictures, 58
Paris, France: managers of McKinsey office in, 80, 108, 126, 128, 162
McKinsey European expansion and, 74, 79
number of consultants in, 126
Parker, Hugh, 75–76, 107, 108
partners, McKinsey: books by, 156
compensation for, 87, 126, 165, 233, 235, 238, 268, 271, 296
conferences of directors and, 72, 73, 117, 165, 171, 198, 208, 218, 234, 238, 245–46, 266, 294, 316–17
contributions to McKinsey capital base by, 268
and control of McKinsey, 277–78
and Davis election as managing director, 274
disenchantment among, 321
and Enron-McKinsey relationship, 245–46
evaluations and, 86, 133, 169, 204–5, 325, 331
and future direction of McKinsey, 117–18
and Gupta insider-trading case, 316–17
Gupta leadership and, 238, 266, 278
and invulnerability of McKinsey, 129
and Kumar as inside trader, 308
McDonald and, 128, 129
and McKinsey culture/values, 266
and McKinsey in the future, 325, 331
McKinsey power structure and, 121
morale among, 321
number of, 222, 235, 274
opera performance of, 208
as organizing structure, 24, 86
and personalizing of McKinsey, 275
relationship among, 274
retirement of, 277–78
and self-governing partnership, 276
share buyback program and, 127
and size of McKinsey, 321
time to becoming, 235
turnover of, 128
women as, 170. See also directors, McKinsey; specific person
Pascale, Richard, 149
A Passion for Excellence (Peters), 152
Patsolos-Fox, Michael, 273, 274
Patton, Arch, 65–66, 120, 121, 128–29, 155–56
Peace Corps, 327
Pearl, David, 208
Pearson, Andrall, 121, 303
Pechiney, 79
Pemex, 103
Pendleton Dudley, 46
PepsiCo, 148, 182, 303
Perez, Javier, 238
Perkins, Tony, 228
personalizing of McKinsey, 275
personnel committees, McKinsey, 121
Perspective on McKinsey (Bower), 275
Perspectives (BCG), 111, 116
Pet Quarters, 265
Peters, Tom, 66, 136, 146–55, 164, 180, 239, 308
petroleum industry, 93
Pets.com, 266
Petters Group, 291
Philip Morris, 64, 92–93
Pichette, Patrick, 327
Pinault, Lewis, 190, 212, 251
Ping An Insurance, 229
Planning Research Corporation, 118
PlaNYC, 283
Polaroid, 233
political appointments, 67
Polli, Rolando, 162
Poor Charlie’s Almanack (Munger), 334
The Pope of Wall Street (Coleman), 62
Porter, Michael, 90, 164, 198
Porter, Suzanne, 207
The Power of Productivity (McKinsey & Co.), 156
practice bulletins, Gluck’s, 141, 278
practice information system/practice-development network, 142–43
The Practice of Management (Drucker), 55
Price Waterhouse/ PricewaterhouseCoopers, 199, 200, 322, 328
Principal Candidate Evaluation Committee (McKinsey), 105
principals, McKinsey: compensation for, 208, 233
promotions to, 208
Principles of Accounting (McKinsey and Hodges), 21
Principles of Scientific Management (Taylor), 26
private equity firms, 232
Proctor & Gamble, 53, 211, 224, 295, 311, 314, 315, 316
Professional Standards Committee, McKinsey, 317
professionalism: Bower’s views about, 51–52, 68, 105, 260
Project Alpha, 145
Project Destiny (AIG-McKinsey), 293–94
Prudential, 307
public/private partnerships, 176
publicity: and advertising by McKinsey, 45–46
and impact of Kumar and Gupta cases on McKinsey, 324
and Matassoni as communications chief, 155
about McKinsey accomplishments, 218–19
and McKinsey relationship with the press, 156–57
McKinsey reluctance about, 76
and McKinsey self-assurance, 206
and McKinsey’s Condé Nast consulting, 279–80
publishing industry: McKinsey clients in, 279–81. See also specific organization
Purcell, Phil, 177, 232
Puri, Tino, 170
pyramid principle: at McKinsey, 123
The Pyramid Principle (Minto), 123, 169–70
quality: of clients, 266
criticisms of McKinsey about, 104
and McKinsey in the future, 331, 332
recruiting/training and, 295
and size of McKinsey, 331
Race for the World (Bryan, Fraser, Oppenheim, and Rall), 248
railroad industry, 121
Railway Express Agency, 108–9
Rajaratnam, Raj, 7, 8, 308, 310, 312–13, 315–19, 322
Rall, Wilheim, 248
Ranieri, Lew, 111
rank and yank, Enron’s, 244–45
Rattner, Steven, 231
Raytheon, 64
Razorfish, 265
reading program (McKinsey, Wellington), 50
real estate market, 245, 252, 287, 288, 292
recruiting/training: broadening of, 277
and characteristics of consultants, 47, 170–71
of Chinese, 228
concerns and questions about, 261–63
and consistency focus of McKinsey, 85, 235
and control of McKinsey, 276
and Davis as managing director, 277
as essence of efficient management, 113
Google-McKinsey competition and, 295
and Gupta achievements, 237, 259–60
at Harvard, 61
in India, 170
Kihn views of, 178
as local decisions, 276
and McKinsey ads in Time and New York Times, 45–46, 94
and McKinsey commercial orientation, 236
and McKinsey culture, 170–71
for McKinsey in the future, 327, 328, 332
by McKinsey (James O.), 33
and midcareer hires, 210
in 1960s and 1970s, 94, 102, 327
in 1990s, 219
“nontraditional,” 67
and overstaffing at McKinsey, 269
quality and, 295
and war for talent, 90, 247–48, 263, 290. See also employees, McKinsey
Reed Elsevier, 323
reengineering concept, 210–12
Reengineering the Corporation (Champy and Hammer), 210
regulation, federal, 18–19, 285, 288. See also deregulation
Reilly, Ewing “Zip,” 38, 130
Renault, 79
Republic Steel, 28
retirement plan, McKinsey, 119, 199, 291
Reuter, Edzard, 157
revenue/fees, McKinsey: for Bank One, 185–86
banking industry and, 204, 286, 292, 293
Bower-Kearney split and, 56
Bower tenure and, 95–96
Bower views about, 73
for China clients, 283
client dissatisfaction with, 186
and client-McKinsey long-term relationships, 185
and client reactions to Gupta and Kumar cases, 322
and compensation of employees, 87
competition and, 137, 190–91, 203–4
contingency, 266
culture/values and, 266
and decline in billing rate, 236
decline in, 267–70
dot-com bubble and, 267–68
and effect of McKinsey on clients, 173, 174
Enron and, 239
European expansion and, 75, 77
and feigned ignorance of financials, 296
and Fortune-Huey story about McKinsey, 206
FSI and, 234
and government as clients, 72–73
In Search of Excellence and, 153
from IT, 200
justification for premium, 204
and Kumar-Rajaratnam investigation, 310
and McKinsey arrogance, 206
and McKinsey as brand, 93
and McKinsey in the future, 329
in 1930s and 1940s, 25, 37, 52
in 1960s and 1970s, 95–96, 102, 108, 126, 134, 138, 164
in 1980s, 125, 164, 203, 222
in 1990s, 164, 197, 203, 222, 235, 236
premium, 190–91
from public sector clients, 283
as secondary to serving clients, 44
sources of, 329
and strategy work, 142
for Tanzania clients, 79
between 2001 and 2010, 137, 235–36, 266, 267–70, 294, 296–97, 322
value billing and, 57. See also specific managing director or client
Rhône-Poulenc, 79
risk-adjusted return on capital (RAROC), 289
RiskMetrics, 311
RJR Nabisco, 41, 81
Robert Heller & Associates, 55
Rockefeller, David, 19, 91
Rockefeller, Nelson, 68
Roddick, Harrison, 47, 50, 56
Roeder, Ulrich, 228
Rolls-Royce, 78
Romney, Mitt, 1, 111, 232, 284
Rosenthal, Jim, 145
Rotten Corps, 84
Royal Dutch Shell, 74–75, 76
Rude Awakening: The Rise, Fall and Struggle for Recovery of General Motors (Keller), 183
“The Rules of Three and Four” (Henderson), 115–16
Russia: McKinsey office in, 160, 228
Saatchi & Saatchi, 200
Safran, 323
Salinas, Carlos, 176
Salomon Brothers, 111
Samsung, 309
San Francisco, California: McKinsey office in, 42, 52, 64, 127, 147, 265
Sandberg, Sheryl, 327
Sandoz, 79
Sanson, Norman, 176, 223
Santa Fe Institute, 217
Sanwa Bank, 115
Sapient, 265
Sara Lee, 134, 224
Sarbanes-Oxley Act, 252
Savoy Plaza Hotel (New York City): as Bower client, 34–35
Sawhill, John, 156, 239–40
Saxena, Parag, 312, 313
Say It with Charts (Zelazny), 123, 156
SBC Communication, 179
SBC Warburg, 227, 232
Scale and Scope (Chandler), 16, 78
Scandinavian Airlines Systems (SAS), 255
Schiefer, Friedrich, 158
Schumpeter, Joseph, 247
Schwab, Klaus, 324
Schwartz, Mark, 312, 313
Science magazine, 78
Scient, 265
Scott, H. Lee Jr., 313
Scottish Development Agency, 175–76
Scovell, Wellington & Company, 31–32, 50
Sculley, John, 168, 182
Sears Roebuck, 17, 54
The Secrets of Excellence. See In Search of Excellence
Securities and Exchange Commission (SEC), 315, 316, 317, 318
Securitization of Credit (Rosenthal and Ocampo), 145
Seimens, 148, 161
Servan-Schreiber, Jean-Jacques, 78
7-S framework, 149, 153
sexual discrimination, 207
The Shadow Government (Guttman and Willner), 68, 70
share buyback program, 127
shareholder capitalism, 103–4
shareholder value added (SVA), 289
shareholders committee, McKinsey, 121, 135, 138, 206, 233, 329
Sharer, Kevin, 220
Sharman, Graham, 217, 218
Shaw, Charles, 129
SHC, Inc., 235
Shearson Lehman, 165
Shell Oil, 147–48
Shepard, Steve, 154
Sherman Antitrust Act (1890), 18
Sidebottom, Peter, 254
Silicon Valley, 264, 294
Singh, Manmohan, 312
Skilling, Jeff, 7, 81, 238–46, 248
Sloan, Alfred P., 19, 54
Small Business Administration, 284
Smart Money magazine, 281
The Smartest Guys in the Room (McLean and Elkind), 241, 245
Smith, Adam, 20
Smith, Everett, 58, 76, 80, 94, 100, 101
Smith, Roger, 177, 183, 184
Smith, Yves, 235, 253
society: role of business in, 261–63
Socony Mobil Oil Company, 82, 91
Solow, Robert, 219
Sony Corporation, 114
South African Airlines, 256
Southern California Symphony, 64
Spalding Sporting Goods, 235
Spansion, 309
Special Operating Risk Committee (SORC), McKinsey, 307–8
specialization, 120–23, 142–46, 215
St. Petersburg Hermitage Museum, 228
Standard Oil, 18
State Street, 121
steel industry, 28, 29, 175
Steiner, Tom, 182, 204, 205–6, 216–17, 305
Stern, Stefan, 329
Stewart, Clothilde de Veze, 270
Stewart, MacLain, 83, 230
Stewart, Matthew, 25–26, 28, 84, 89, 112, 151, 184, 206
Stewart, Michael, 307–8
Strategic Planning Associates, 110
strategic planning/thinking: analytical approach to, 113
and BCG as competition for McKinsey, 88–89
BCG role in promotion of, 88–89
Bower’s views about, 41
and business school curriculums, 89–90
Citibank-McKinsey consulting and, 91–92
competition and, 186
decentralization and, 89–90
emergence of, 55–56
as essential to management, 89
focus on, 88–90
Fortune magazine survey about, 140
at GE, 113–15
Gluck and, 153, 197
GM-McKinsey and, 184
goal of, 186
Industrial Prussianism and, 186
as justification for corporate existence, 184
as large source of McKinsey revenue, 73
as learning process, 113
McKinsey knowledge focus and, 139–40
McKinsey’s idea of, 41
nine-box matrix and, 143–45
organizational structure and, 141–42
Peters views about, 151
phases in, 141
as pipe dream, 112–13
Superteam for, 140–42
strategy revolution, 112
Strategy and Structure (Chandler), 77
Sturdivant, Fre
d, 168, 190–91
succession planning, 66
Sumitomo Bank, 162, 165
Sun Oil, 91
Sunbeam Electric, 53
Superteam, McKinsey, 140–42
Supplementing Successful Management (McKinsey & Company), 45
surveys, McKinsey: as tools, 53–54
Sussex University: as McKinsey client, 77
Swain & Moore, 310
Swedish bank industry, 252
Swift & Company, 24
Swiss banks, 252–53, 286
Swiss Re, 232
Swissair, 2, 58, 86, 255–57
Switzerland: McKinsey activities in, 79, 128, 255–57
Sylvania Electric, 53
Systems Development Corporation, 118
Taj Capital, 312
Talbert, Harold, 68
talent: competition for, 90, 119, 166, 247, 263, 290
Tate & Lyle, 78
Taylor, Frederick Winslow, 26, 28
Taylor, Myron, 31
Taylorism, 26–27
technology, 74, 170, 171, 193, 196, 201–3, 276. See also information technology (IT)
Telefonica, 266
TeleSoft Partners, 312
terrorism, 214
Texaco, 74, 91
Texas Pacific Group, 279
Thatcher, Margaret, 176
The Firm. See McKinsey (The Firm)
Thiam, Tidjane, 307
Thompson, Hine & Flory, 32–33
Thompson, Ken, 254–55
Thomson Reuters, 323
Thuillez, Gerard, 162
Time, Inc., 15, 280, 281
Time magazine: McKinsey advertising/recruiting in, 45–46, 94
Time Warner, 253, 281
The Tom Peters Phenomenon (Crainer), 173
Total Quality Management, 89–90
Towers Perrin, 42
Townsend, Charles, 280
Toyota, 4, 174, 183, 184
TPG Capital, 167
“transformational relationships,” client-McKinsey, 6, 136–37, 180, 211, 326
Triad Power (Ohmae), 161, 163
Trippe, Juan, 65
Trotsky, Leon, 26
Tsinghua University, 228
Turner, Lord Adair, 285
Tutu, Desmond, 314
Tzu, Han Fei, 4
UBS, 227, 232, 253, 292
Unilever, 78
Union Bank, 79
Union Carbide, 194
Union Oil, 91
United Parcel Service (UPS), 53
United Technology, 201
University of Chicago: McKinsey as graduate of, 13
McKinsey as professor at, 4, 13–14, 24
Universum surveys, 295
Unleashing the Department Store (Bower), 52
“up-or-out” system, 4, 83–84, 127, 244, 245, 248, 269, 279, 330
Upjohn Company, 53
Urkowitz, Mike, 204
U.S. Steel, 17, 18, 31, 37, 53
U.S. Trust, 127
USA Today: McKinsey alumni story in, 192, 281
Useem, Michael, 79
USG, 233
value-delivery systems, 144
values. See culture/values, McKinsey
van den Berg, Jan, 108
Vance, Jack, 48, 128
Vascellaro, Jerome, 277
The Firm: The Story of McKinsey and Its Secret Influence on American Business Page 40
