Looking to get confirmation on how much we paid McKinsey for this current reorg in consultancy fees. I hear about 200 million. Can anyone with some knowledge on this confirm or deny?
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$800m
@ke yea im sure perplexity is going to know how much Chevron paid BCG in 2020… 🙄
@ke I don’t know what to tell you, but ImagineIT, the name of the d-mb IT function reorg in 2020, alone cost $30MM for BCG. That does not include all other functions and the big enterprise review that they did to roll everything up.
For an organization that cost only a fraction of the company, $1.8B of opex, the reorg bill to BCG was already that high.
In a typical non-ROM year, the upstream consulting spend was $300MM.
A few straightforward Google and Perplexity AI searches show that reorganization projects cost in the range of tens of millions of dollars. No way it cost $200 mil.
We absolutely paid them over $100M.
In 2020, each function paid BCG $30-40M… I imagine McKinsey’s rates are similar.
McKinsey & Company Inc. (McKinsey), a global management consulting firm based in New York, has agreed to pay $650 million to resolve a criminal and civil investigation into the firm’s consulting work with opi--ds manufacturer Purdue Pharma L.P. (Purdue). The resolution pertains to McKinsey’s advice to Purdue concerning the sales and marketing of Purdue’s extended-release opi--d dr-g, OxyContin, including a 2013 engagement in which McKinsey advised on steps to “turbocharge” sales of OxyContin.
https://www.justice.gov/archives/opa/pr/justice-department-announces-resolution-criminal-and-civil-investigations-mckinsey-companys
If we actually paid them 200mm then it is alarmingly disappointing. The net effect was some shifting of organizational swim lanes. It can’t possibly be true that we wasted 200mm on that, right? Doesn’t MW know how to do this already? We do it every 4 years so why not just copy last time? This cannot possibly be true.
This is the same company that advised Perdue Pharma on how to push OxyContin. As a result, McKinsey was sued and paid $573 million to a coalition of 47 States, $650 million to settle with the DoJ, and $78 million to healthcare funds and insurance companies. Great choice to hire them.
There is a pattern with McKinsey, they don’t know what we do, how we do it, or why, but they can for sure tell us how to do it better and with less people. They also have a whole group that advises executives on how much they should be paid……. Spoiler alert, the answer is always “more”!
https://www.amazon.com/When-McKinsey-Comes-Town-Consulting/dp/0593663322
McKinsey is hiring , they had a great quarter
Probably the same we paid Boston Consulting
Good deal for McKinsey! Waiting still for that consultancy that recommends cleaning out ELT and all middle management.
That’s correct