I will teach you how to bring your life stories to essays faster with F1GMAT's essay guides. Download below or subscribe to F1GMAT's Service and work with me - Atul Jose, Author/Editor/Founding Consultant, F1GMAT(16 Years of helping applicants gain admissions to M7 and Top 30 schools) McKinsey and Co. is regarded as “the first modern, pure management and strategy consulting company” and has since maintained its position as a pioneer in the field of management consultancy.
Founded in 1926 by James O. McKinsey, the firm started as a small accounting consultancy company. Under the leadership of Marvin Bower, who became the firm's managing director in 1950, McKinsey shifted its focus towards strategic management, transformation of organizations, and overall effectiveness in delivering value to clients.
Bower's tenure marked a significant turning point, as McKinsey began to establish its reputation as a leading strategy consultancy with revenues estimated to cross $14 billion in 2024.
In this deep dive into McKinsey and Co and MBA graduates’ fascination with the company, we cover:
• What is the Influence of McKinsey in Global Companies?
• Who is a McKinsey Consultant?
• How is the talent divided at McKinsey?
• What is the MBA Placement Trends at McKinsey
• McKinsey’s Leadership Development Strategy
• Why is McKinsey popular among MBAs
• Workaholics and Entrepreneurs – the McKinsey Path
• Elite Peers at McKinsey
• McKinsey - Travel and Turnover Rate
What is the Influence of McKinsey in Global Companies?
Despite the saturation in the Consulting market, McKinsey consultants enjoy influence in 90 of the top 100 global companies where their services are highly valued. The services spread to twenty categories of industries.
Who is a McKinsey Consultant?
This is the most common question we get in our Career Planning Service from career switchers and college graduates. The lack of homogeneity in the definition of a consultant provides the company leverage to include feasibility study, organizational changes, process optimization, technology integration, strategic insights with AI, policy development and marketing, among the many niche consulting services under the broad definition of ‘consulting.’
See the Breakdown of Products and Services Delivered by McKinsey in F1GMAT Premium’s Employer Series on McKinsey.
How is the talent divided at McKinsey?
At McKinsey, the talent pool is divided based on the applicant’s background as a functional expert or a generalist.
The Generalist are assigned to General and Practice Based consulting engagements where the primary focus is on organizational change, transformation of products & services, and policy development.
Functional experts from Finance and Technology work as subject-matter experts in M&A, Corporate Finance, and Digital Consulting & Implementation projects. The scope of problem solving is limited to their area of expertise and future opportunities depend on the previous track record.
Generalist vs. Specialist Consulting
The consultants may choose to focus on a particular practice, or they may be generalists with the skills to work in varying practices. Business analysts or associates are hired in these positions.
MBA vs Undergraduate – Role Title
Usually undergraduates are hired as analysts, while MBAs or persons with equivalent work experience fill up the roles of Associate consultants.
An estimated 350+ MBA graduates from top schools are hired at McKinsey every year. This is a sharp decline from the 500+ the company used to hire a decade ago.
The reason for the shift is the openness of McKinsey to hire undergraduates from diverse backgrounds at entry level role and mentor them into Associate Consultant roles – a role sought by career switching MBA graduates.
Chief among the new brand of consultants are Technologists and Finance Professionals seeking business roles and a career in management who are likely to choose consulting roles over traditional functional roles. McKinsey entering implementation projects in deals and technology now have a strong pipeline of subject matter experts.
What is the MBA Placement Trends at McKinsey
McKinsey and Co. is the highest single global employer of MBA graduates and a leading recruiter in the top 20 Business Schools.
Harvard Business School (HBS) alumni at McKinsey leads in representation, followed by consulting powerhouses Stanford, Columbia, Booth, LBS, INSEAD and the regulars with nimble consulting curriculum. However, there has been fluctuations in hiring in recent years.
If you have concerns about the probability of getting hired at McKinsey with a top MBA as a strategic tool, I would highly suggest that you analyze the recent trends in hiring at the top 15 US Schools and European powerhouses INSEAD & LBS.
McKinsey’s Leadership Development Strategy
McKinsey’s policy to nurture the potential of the employees extends throughout all levels of the hierarchy. The maximum tenure of a managing director is three years, thus offering opportunities for other senior partners to head the company. This process changes the dynamics on how Business operates, infusing the leadership with new ideas and methodologies.
Marvin Bower, one of the most illustrious Managing Directors, came up with the ‘Up or Out Policy’ which is implemented till today. It is required that the development rate of an individual must go up, and their performance track must show an upward trend for that person to continue their employment at McKinsey.
Why is McKinsey popular among MBAs
A common motivation is the autonomy that each consulting position offers to new recruits and even career switchers entering the industry.
Second is McKinsey’s performance-based bonuses. The company typically offers about 18% higher salary than the industry standards, along with amenable family and health benefits.
According to the employment trends of the school with the best consulting placements, the total median base salary has crossed $222,000 – a new territory of compensation where the gap between the total cost and total salary is catching up in top US MBA programs.
McKinsey’s consistent presence across top US schools and in London Business School and INSEAD are reasons for the ROI catching up in recent years.
Workaholics and Entrepreneurs – the McKinsey Path
Working for McKinsey is not for everyone.
The time and performance pressure push the employee to show their best or quit midway. The personal growth through this experience is satisfying as employees are demonstrating their individual contributions. Aligning personal growth with company growth is challenging for most leading companies, but McKinsey has mastered this art. That is why you will find many Entrepreneurs with McKinsey background.
Elite Peers at McKinsey
Even the subject matter experts entering a consulting role at McKinsey don’t have a traditional mindset. Many new recruits have highlighted the value of working with such peers who have unconventional thinking and approaches as the biggest motivation.
This self-selection mechanism is propagated with the influx of MBA graduates returning to McKinsey through sponsorship or entering the company after a career switch. Such restructuring of the company in talent through critical stages of a company’s talent acquisition offers a stimulating work environment that inspires the Consultants to engage in a healthy competition.
McKinsey - Travel and Turnover Rate
Most consulting positions require an employee to put in a lot of travel time. While some do mind the hectic schedule this creates, others see it as an opportunity. However, the high employee turnover rate may be a factor that puts off potential candidates.
Many employees do not continue at McKinsey for more than a period of 3-4 years. Even so, these employees use McKinsey experience as a great career launch pad and have gone on to gain employment with other prestigious firms or become Entrepreneurs.
A major detriment to an employee's morale is hours of long and tiring work. While many employees do speak of the long hours and the huge workload, most of them also speak of how passionate they are about their jobs.
Additional Read
1. How Management Consulting Became Popular Among MBAs
References
1. Salary and Placement Trends in Top MBA Programs for McKinsey (F1GMAT Premium)
2. History
3. Revenue
