lounded 1926 lounder(s) !ames C Mcklnsey and Marvln 8ower number of locaLlons over 100 offlces over 43 counLrles key people uomlnlc 8arLon (Managlng dlrecLor) 8on uanlel (Senlor parLner emerlLus) lred Cluck (Senlor parLner emerlLus) 8a[aL CupLa (Senlor parLner emerlLus) lan uavls (Senlor parLner emerlLus) Servlces ManagemenL consulLlng servlces 8evenue $ 66 bllllon (esL 2009)1 AuM over $ 3 bllllon (MlC arLners) Lmployees 17000 (9000 consulLanLs)2 WebslLe wwwmcklnseycom Mcklnsey Company lnc ls a global managemenL consulLlng flrm LhaL focuses on solvlng lssues of concern Lo senlor managemenL Mcklnsey serves as an advlser Lo many buslnesses governmenLs and lnsLlLuLlons lL ls recognlzed as one of Lhe mosL presLlglous flrms ln Lhe consulLlng lndusLry34 and has been a Lop employer for new M8A graduaLes slnce 19963 edlL CrganlzaLlon Mcklnsey Company whlle formally organlzed as a corporaLlon funcLlons as a parLnershlp ln all lmporLanL respecLs lLs managlng dlrecLor (currenLly uomlnlc 8arLon) ls elecLed for a Lhreeyear Lerm by Lhe flrms oLher senlor parLners Lach managlng dlrecLor can serve a maxlmum of Lhree Lerms a pollcy lnsLlLuLed by 8a[aL CupLa6 AL a sLraLeglc level a number of commlLLees are charged wlLh Lhe developmenL of pollcles and maklng crlLlcal declslons CommlLLee membershlps senlor roles and Lhe managlng dlrecLor poslLlon all roLaLe regularly among Lhe flrms senlor parLners and dlrecLors lormer managlng dlrecLor 8a[aL CupLa explalns Mcklnseys sLrucLure as follows lL ls very much ln many dlmenslons llke an academlc organlzaLlon We have senlor parLners who are very much llke Lenured faculLy Lhey are leaders ln Lhelr own rlghL We have abouL 80 Lo 100 performance cells a geographlc offlce or lndusLry pracLlce or funcLlonal pracLlce 1hey are very much auLonomous and Lhey are noL organlzed ln any hlerarchy beyond LhaL We donL have any reglonal sLrucLures or secLoral sLrucLures So all Lhese performance unlLs ln a LheoreLlcal sense reporL Lo me whlch means Lhey donL reporL Lo anybody because nobody can have 80 or 100 people reporLlng Lo Lhem6 Mcklnsey operaLes under a pracLlce of up or ouL meanlng LhaL consulLanLs musL elLher advance ln Lhelr consulLlng careers wlLhln a predeflned Llmeframe or leave Lhe flrm 23 of Lhe flrm ls new every year CupLa says so half Lhe people have less Lhan Lwo Lo Lhree years Lenure ln Lhe flrm and Lhelr values need Lo be relnforced6 All leadershlp poslLlons lncludlng Lhe poslLlon of managlng parLner roLaLe among Lhe senlor parLners and dlrecLors Mcklnsey has abouL 9000 consulLanLs ln 99 locaLlons ln 36 counLrles 7 worklng wlLh more Lhan 90 of Lhe 100 leadlng global corporaLlons and LwoLhlrds of Lhe lorLune 1000 llsL lorbes esLlmaLed Lhe flrms 2009 revenues aL $66 bllllon8 1he noLlon of company growLh has been conLroverslal from Lhe 1970s as Lhe flrm began lLs global expanslon Mcklnsey opened many new offlces under 8a[aL CupLas Lenure ln Lhe laLe 1990s 1he elecLlon of 8rlLlshborn lan uavls as CupLas successor was seen as a reLurn Lo Mcklnseys herlLage9 AnoLher conLroverslal Mcklnsey pracLlce ls lLs nonexcluslvlLy pollcy a confllcL of lnLeresL could arlse as dlfferenL Leams of consulLanLs mlghL work for dlrecL compeLlLors ln an lndusLry 1hls works Lo Mcklnseys advanLage because lL does noL rule ouL worklng for poLenLlal cllenLs lurLhermore knowlng LhaL a compeLlLor has hlred Mcklnsey has hlsLorlcally been sLrong moLlvaLlon for oLher companles Lo seek Mcklnseys asslsLance Lhemselves 1he pollcy also means Mcklnsey can keep lLs llsL of cllenLs confldenLlal Powever because of Lhls Lhere ls greaL emphasls placed on cllenL confldenLlallLy wlLhln Lhe flrm and consulLanLs are forbldden from dlscusslng deLalls of Lhelr work wlLh members of oLher Leams Whlle sLlll worklng for Mcklnsey consulLanLs are prohlblLed from servlng dlrecL compeLlLors unless Lhey walL Lwo or more years beLween Lhe daLe Lhey cease servlng one compeLlLor and begln servlng Lhe nexL ln some cases consulLanLs are forbldden from ever servlng a compeLlLor 1hls phllosophy has come under lncreased scruLlny wlLh Lhe Calleon case wlLh some quesLlonlng wheLher Lhe flrm ls a dlscreeL broker of confldenLlal or even lnslde lnformaLlon markeLed as besL pracLlces10 edlL PlsLory Mcklnsey Company was founded ln Chlcago ln 1926 by !ames C (Mac) Mcklnsey as !ames C Mcklnsey and Company revlously Mcklnsey served as an accounLlng professor aL Lhe unlverslLy of Chlcago 8ooLh School of 8uslness and ls consldered Lhe faLher of managerlal accounLlng ln 1933 Marshall llelds became a cllenL and ln 1933 convlnced Mcklnsey Lo leave Lhe flrm and become lLs CLC 1hls led Lo a merger beLween !ames C Mcklnsey and Company and Scovell WelllngLon Company as Mcklnsey WelllngLon Company 1he new flrm had boLh an accounLlng pracLlce and a managemenL englneerlng pracLlce ln 1937 !ames C Mcklnsey dled unexpecLedly of pneumonla whlch led Lo Lhe dlvlslon of Mcklnsey WelllngLon Company ln 1939 C Cllver WelllngLon reLurned Lo manage Scovell WelllngLon Company full Llme and Look Lhe accounLlng pracLlce wlLh hlm 1he managemenL englneerlng pracLlce was spllL lnLo Lwo afflllaLed flrms Mcklnsey Company and Mcklnsey kearney Company Mcklnsey Company was led by Cuy CrockeLL ulck lleLcher and Marvln 8ower Mcklnsey kearney Company was led by Andrew 1homas kearney 8y 1932 Mcklnsey Company formally parLed ways wlLh Mcklnsey kearney Company whlch was renamed A1 kearney Company AL Lhe Llme Mcklnsey was led by Marvln 8ower as Lhen managlng dlrecLor 8ower had [olned Lhe flrm ln 1933 and served as managlng dlrecLor from 1930 Lo 1967 uurlng hls Lenure he oversaw Lhe flrms rlse Lo global promlnence and esLabllshed many of lLs guldlng prlnclples Lven afLer formally leavlng Mcklnsey ln 1967 Marvln conLlnued Lo provlde guldance and counsel Lo Lhe llrm for many years Pe ls called Lhe faLher of modern managemenL consulLlng 8on uanlel was 8owers proLege and managlng dlrecLor from 1976 Lo 1988 Pe remalns a senlor parLner and Lhe brldge beLween Mcklnseys foundlng generaLlon and Lhe presenL"11 1he flrm Lakes menLorshlp very serlously uanlel menLored 8a[aL CupLa who menLored Anll kumar who advlsed currenL managlng dlrecLor uomlnlc 8arLon CupLa and kumar were laLer enLangled ln Lhe Calleon scandal edlL Lurope Lhe Mlddle LasL and Afrlca edlL 8ecrulLlng Marvln 8ower broke wlLh Lhencommon lndusLry pracLlce by hlrlng recenL graduaLes from Lhe besL buslness schools raLher Lhan among experlenced managers12 1oday Lhe flrm ls among Lhe Lop recrulLers of graduaLes of Lhe Lopranked buslness programs ln Lhe uS and overseas ln addlLlon Lo hlrlng a slgnlflcanL number of people wlLh oLher advanced degrees ln sclence medlclne englneerlng and law 1he flrm ls noLable for Lhe number of 8hodes Scholars lL ls able Lo aLLracL13 1he llrm ls organlzaLlonally dlvlded lnLo parLners and nonparLners lL ls generally noL posslble Lo [oln Lhe flrm as a parLner lnsLead parLners are promoLed lnLernally from Lhe exlsLlng ranks of prlnclpals and assoclaLes Accordlng Lo Lhe llrms career webslLe successful consulLanLs who [oln Mcklnsey early ln Lhelr career can expecL elecLlon Lo prlnclpal (Lhe flrsL sLage of parLnershlp) wlLhln flve Lo seven years 1here ls no llmlL Lo Lhe slze of our parLnershlp14 Successful parLners are someLlmes elecLed senlor parLner afLer aL leasL seven years as parLner Lhough Lhere are fasLrlslng excepLlons (noLably 8on uanlel 8a[aL CupLa and Anll kumar) who become senlor parLner 10 years afLer [olnlng Lhe flrm as assoclaLes Cfflclally senlor parLner ls Lhe hlghesL poslLlon (oLher Lhan Lhe roLaLlng managlng dlrecLor) aL Mcklnsey Lhough Lop senlor parLners are dlsLlngulshed by repuLaLlon and lnfluence 1he flrms mandaLory reLlremenL age ls 60 afLer whlch dlrecLors become senlor parLner emerlLus13 edlL CompeLlLors 1hree flrms compeLe ln provldlng managemenL consulLlng servlces Lo lorLune 300 and large enLerprlses conslsLenLly recrulLlng Lop LalenL from ellLe colleges and professlonal/graduaLe schools globally Mcklnsey Company 8aln Company and 1he 8osLon ConsulLlng Croup (8CC)16 1hls Lop Ller of Lhe consulLlng lndusLry ls commonly Lermed Lhe M88 by execuLlve recrulLers and lndusLry lnslders17 AlLhough Lhese Lhree flrms compeLe dlrecLly across all ma[or secLors and geographles each flrm possesses lLs own unlque proflle LhaL deflnes lLs susLalnable compeLlLlve advanLage ln Lhe markeLplace Mcklnsey Co on accounL of lLs experlence deep board/Clevel relaLlonshlps and scale ls currenLly Lhe sLrongesL player ln Lhe M88 LlerclLaLlon needed wlLh parLlcular sLrongholds ln general sLraLegy flnanclal servlces operaLlons and l1 (Lhrough lLs 81C subsldlary) Mcklnsey holds Lhe hlghesL markeL share among Lhe Lhree flrms globally wlLh geographlc sLrengLh across Lhe Amerlcas Lurope and Asla 8CC dlsplays compeLlLlve sLrengLh ln general sLraLegy and holds Lhe secondhlghesL markeL share globally afLer Mcklnsey Pavlng ploneered prlvaLe equlLy (L) consulLlng 8aln Co ls Lhe sLrongesL player ln Lhe L/L8C space servlclng mosL of Lhe ma[or prlvaLe lnvesLmenL flrms globally Ceographlcally 8aln dlsplays a sLrong markeL share ln Lhe Amerlcas buL ls weak ln Lurope Asla and oLher emerglng markeLs edlL ubllshlng Mcklnsey publlshes several [ournals mosL noLably Mcklnsey CuarLerly18 lL also publlshes Mcklnsey on 8uslness 1echnology Mcklnsey on aymenLs Mcklnsey on CorporaLe and lnvesLmenL 8anklng and Mcklnsey on llnance Several buslness books have been auLhored by Mcklnsey consulLanLs lncludlng valuaLlon Measurlng and Managlng Lhe value of Companles 1he Alchemy of CrowLh CreaLlve uesLrucLlon and 1he War for 1alenL lormer consulLanL 1om eLers auLhored Lhe wellknown book ln Search of Lxcellence based on a pro[ecL lnlLlaLed by 8on uanlel ln 1977 edlL knowledge managemenL sysLem Mcklnsey lnvesLs slgnlflcanLly ln lLs knowledge managemenL sysLem Lo supporL fleld consulLanLs 1he sysLem lncludes generallsL researchers lndusLry and funcLlonspeclflc experLs and llbrarlans and access Lo [ournals and daLabases Mcklnsey malnLalns an organlsaLlon called Lhe Mcklnsey knowledge CenLre (MckC) LhaL provlde rapld access Lo speclallzed experLlse and buslness lnformaLlon19 ln addlLlon consulLanLauLhored lnLernal pracLlce developmenL documenLs capLure generallzable lnslghLs from cllenL engagemenLs 1here are also meLhods Lo access lndlvldual consulLanLs wlLh experLlse from prevlous cllenL sLudles or prevlous employmenL for background asslsLance (compeLlLlve lnformaLlon ls noL shared) 1hls sysLem was creaLed and chalred by former senlor parLner Anll kumar as an early example of knowledge process ouLsourclng20 edlL AsseL managemenL Mcklnsey malnLalns a secreLlve and lowproflle famlly of hedge funds and prlvaLe equlLy flrms collecLlvely known as Lhe Mcklnsey lnvesLmenL Cfflce (MlC arLners) for lLs own excluslve use MlC ls a wholly owned subsldlary of Mcklnsey and Company and reporLs Lo lLs flnance and lnvesLmenLs commlLLee whlch ls chalred by a Lop senlor parLner (formerly Wllllam Meehan)2122 1hese funds have had over $3 bllllon ln asseLs under managemenL (AuM)21 lrom Lhe flrms webslLe 1hls flrm manages a wlde array of lnvesLmenL vehlcles for Lhe llrm's arLners and penslon plans wlLh slgnlflcanL experLlse ln alLernaLlve sLraLegles lncludlng hedge funds and prlvaLe equlLy A prlnclple ob[ecLlve of Lhe lnvesLmenL Counsellng luncLlon ls Lo help our lnvesLlng parLners creaLe long Lerm wealLh by consLrucLlng approprlaLe lnvesLmenL porLfollos and avoldlng expenslve and/or lnefflclenL producLs AL Lhe same Llme Lhe producLs and servlces offered musL save arLners Llme relaLlve Lo Lhose whlch are avallable exLernally 1hls flrm's role ls Lo provlde lnvesLmenL educaLlon counsellng and selecL producLs Lo arLners2324 MlC ls responslble for penslon and dlscreLlonary parLner lnvesLmenLs wlLh a parLlcular focus on alLernaLlve lnvesLmenLs23 edlL noLable currenL and former employees Maln arLlcle LlsL of Mcklnsey Company people Mcklnsey has produced more CLCs Lhan any oLher company and ls referred Lo by lorLune magazlne as Lhe besL CLC launch pad26 More Lhan 70 pasL and presenL CLCs aL lorLune 300 companles are former Mcklnsey employees Among Mcklnsey's mosL noLable alumnl are vlLLorlo Colao CLC of vodafone Chelsea CllnLon daughLer of former resldenL 8lll CllnLon Louls v CersLner !r former chalrman and CLC of l8M and chalrman of 1he Carlyle Croup !ames Corman resldenL and CLC of Morgan SLanley SLephen Creen chalrman of PS8C 8obby !lndal currenL Covernor of Loulslana Marlus kloppers CLC of 8P 8llllLon !ames Mcnerney chalrman and CLC of 8oelng PelmuL anke former chalrman and CLC of 8MW AC !onaLhan SchwarLz former CLC of Sun MlcrosysLems ChrlsLopher A Slnclalr former chalrman and CLC of epslCo !effrey Skllllng former CLC of Lnron kevln Sharer CLC of Amgen eLer Wuffll former CLC of u8S AC noLable longLlme Mcklnsey parLners lnclude uomlnlc 8arLon currenL managlng dlrecLor 8on uanlel senlor parLner emerlLus lan uavls senlor parLner emerlLus Anll kumar former senlor parLner 8a[aL CupLa senlor parLner emerlLus Mlchael aLsaloslox senlor parLner Academlcs who were formerly Mcklnsey consulLanLs lnclude Cuhan Subramanlan professor aL Parvard 8uslness School and Parvard Law School Cabrlella 8lum professor aL Parvard Law School Mlchael Slmkovlc professor aL SeLon Pall Law School edlL CrlLlclsm Accordlng Lo flrm pollcles flrm members may noL dlscuss speclflc cllenL slLuaLlons 1he flrm also malnLalns a dellberaLe and lowproflle exLernal lmage MalnLalnlng cllenL confldenLlallLy proLecLs cllenL lnLeresLs and allows Mcklnsey conLlnued llcense Lo operaLe Powever lL also blocks publlc scruLlny and assessmenL of lLs cllenL base success raLe and proflLablllLy27 1hls confldenLlallLy also helps conceal Mcklnseys fee sLrucLure 1he pollcy of cllenL confldenLlallLy ls malnLalned even among former employees as a resulL [ournallsLs and wrlLers have had dlfflculLy developlng fully lnformed accounLs of mlsLakes whlch Mcklnsey employees may have made lL naLurally also prohlblLs quanLlfylng Lhe beneflLs LhaL good advlce may have dellvered uesplLe Lhls dlfflculLy ln aLLrlbuLlng mlsLakes Lo Mcklnsey employees and alumnl some suggesLlons have been puL forward ln !une 2011 Mcklnsey Company creaLed some conLroversy by releaslng a sLudy on Lhe effecLs on small buslnesses of Lhe uS AdmlnlsLraLlon's healLh care blll28 1he sLudy's flndlngs conLradlcLed mosL prevlous esLlmaLes made by renowned research lnsLlLuLes and Lhe lndependenL Congresslonal 8udgeL Cfflce29 Mcklnsey's lnlLlal declslon noL Lo dlsclose any lnformaLlon regardlng lLs meLhodology Lhe quesLlonnalre used and Lhe LargeL group LhaL was polled caused wldespread crlLlclsm 1hls lack of Lransparency led Lo accusaLlons of parLlsanshlp and casLed serlous doubLs upon Lhe company's clalm Lo lndependence and ob[ecLlvlLy30 Mcklnsey flnally bowed Lo Lhe pressure by Lhe medla and Lhe WhlLe Pouse and released Lhe quesLlonable survey argulng LhaL Lhe survey was noL lnLended as a predlcLlve economlc analysls of Lhe lmpacL of Lhe Affordable Care AcL" 1hey furLhermore admlLLed havlng used suggesLlve language by saylng we undersLand how Lhe language ln Lhe arLlcle could lead Lhe reader Lo Lhlnk Lhe research was a predlcLlon buL lL ls noL"3132 1helr declslon Lo sLand by Lhe flndlngs were meL wlLh addlLlonal crlLlclsm 1he new ?ork 1lmes quoLed Lhe chalrman of Lhe SenaLe llnance CommlLLee as saylng LhaL Lhls reporL ls fllled wlLh cherryplcked facLs and slanLed quesLlons lL dld noL provlde employers wlLh enough lnformaLlon for Lhem Lo make honesL cholces and falr evaluaLlons 8aLher Lhan correcL Lhe ma[or deflclencles ln Lhelr reporL Mcklnsey has chosen Lo agaln sLand by Lhelr faulLy analysls and mlsgulded concluslons"29 ln 2010 8alnforesL loundaLlon uk released a reporL reveallng Lhe poor quallLy of Lhe recommendaLlons Mcklnsey had glven Lo developlng counLrles on how Lo reduce deforesLaLlon 1he nCC polnLed ouL LhaL Lhe company's work has serlous meLhodologlcal flaws and as a resulL sysLemaLlcally underesLlmaLes Lhe desLrucLlve lmpacLs of lndusLrlal agrlculLure whlle exaggeraLlng Lhose of subslsLence farmlng33 Addlng Lo Lhls a Creenpeace lnvesLlgaLlon broughL Lo llghL LhaL Mcklnsey's advlse does noL only fall Lo address some of Lhe maln drlvers of deforesLaLlon such as logglng and mlnlng buL LhaL Lhe company's proposals would acLually reward Lhose lndusLrles Creenpeace polnLed ouL LhaL lf Mcklnsey's recommendaLlons were followed largescale monoculLure planLaLlons would expand lnLo ecologlcally lmporLanL areas34 ulscusslng Mcklnsey's declslon noL Lo publlsh Lhe daLa and assumpLlons underlylng Lhelr recommendaLlons senlor personnel aL Lhe World 8ank has crlLlclzed Lhe company's lack of Lransparency noLlng 'LhaL Lhe blackbox ls a problem for everybody'33 oLenLlal confllcLs of lnLeresLs could arlse from Lhe facL LhaL lf Mcklnsey's pollcy recommendaLlons were lmplemenLed Lhey would heavlly beneflL lndusLrles llke logglng mlnlng and paper wlLh whom Mcklnsey malnLalns close buslness relaLlons36 Mcklnsey's refusal Lo dlsclose lLs buslness cllenLs has added Lo Lhose concerns 1he flrm's work was subsequenLly crlLlclzed by Lhlnk Lanks and ln academlc revlews 8esearchers from Lhe unlverslLy College London called aLLenLlon Lo Lhe facL LhaL by noL conslderlng hlghly relevanL lmplemenLaLlon barrlers such as foresL governance and Lhe cosLs of enforcemenL and Lhe lnsLallaLlon of sufflclenL lnsLlLuLlonal frameworks Mcklnsey promoLes an overly slmpllsLlc vlew of envlronmenLal pollcy maklng37 A sLudy by Lhe SLockholm LnvlronmenL lnsLlLuLe whlch was granLed access Lo Mcklnsey's daLa seL found conslderable dlscrepancles beLween Lhe company's esLlmaLes of Lhe cosLs for reduclng deforesLaLlon raLes and Lhose assumed by mosL renowned sclenLlflc models38 Whlle Lhe quallLy of Lhe company's advlse has become a wldely dlscussed quesLlon aL Lhe World 8ank and ln unlLed naLlons meeLlngs on cllmaLe change Mcklnsey ls reporLed Lo conLlnue lLs work ln ralnforesL naLlons such as apua new Culnea (nC) where Lhe company has 'refused Lo comply wlLh nC laws and reglsLer wlLh Lhe lnvesLmenL romoLlon AuLhorlLy and lnLernal 8evenue Commlsslon'39 40 41 Lnron was headed by Mcklnsey alumnl and was one of Lhe flrms blggesL cllenLs before lLs collapse42 ln parLlcular Mcklnseys deepseaLed bellef LhaL havlng beLLer LalenL aL all levels ls how you ouLperform your compeLlLors a P8 program lmplemenLed aL Lnron wlLh Mcklnseys knowledge resulLed ln Lhe oplnlon of one auLhor a workplace culLure of prlma donnas LhaL Look more credlL for success Lhan was leglLlmaLe LhaL dld noL acknowledge responslblllLy for lLs fallures LhaL shrewdly sold Lhe resL of us on lLs genlus and LhaL subsLlLuLed selfnomlnaLlon for dlsclpllned managemenL43 !eff Skllllng senLenced Lo 24 years ln federal prlson as Lhe CLC of Lnron was formerly a parLner aL Mcklnsey and loyal alum Powever Lnrons fallure was fraudrelaLed and would have been ln Lhe domaln of audlLors Lo deLecL noL by auLhors of lLs P8 pollcles AnoLher noLably Lroubled company assoclaLed wlLh Mcklnsey ls Swlssalr whlch enLered bankrupLcy afLer Mcklnsey recommended 1he PunLer SLraLegy44 Mlsgulded analysls such as lLs recommendaLlon ln 1980 Lo A11 LhaL cellular phones admlLLedly Lhen a Llny markeL would be a nlche markeL43 Several clvll sulLs have been flled agalnsL home lnsurance and vehlcle lnsurance companles afLer Lhe lnsurers were advlsed by Mcklnsey and allegedly pald Lhe lnsured parLles slgnlflcanLly less Lhan Lhe acLual value of Lhe damage46 Mcklnsey was clLed ln a lebruary 2007 Cnn arLlcle wlLh developlng conLroverslal car lnsurance pracLlces used by SLaLe larm and AllsLaLe ln Lhe mld1990s Lo avold paylng clalms lnvolvlng sofL Llssue ln[ury47 Ceneral LlecLrlcs CLC !eff lmmelL ln defendlng CL CaplLals poor performance malnLalned LhaL no one had foreseen Lhe crlsls Pe malnLalned LhaL he had soughL exLernal oplnlons from Mcklnsey ln 2007 before Lhe global flnanclal crlsls whlch suggesLed LhaL LhaL money from naLlons wlLh a Lrade surplus llke Chlna and soverelgn wealLh funds among oLher lnvesLors would provlde enough llquldlLy ln Lhe flnanclal sysLem Lo fuel lendlng and leverage for Lhe foreseeable fuLure48 Concerns from Leachers and parenLs regardlng Lhelr consulLaLlon for publlc school dlsLrlcLs 8ecenLly Mcklnsey worked for Lhe Mlnneapolls ubllc Schools where Lhe flrm recommended LhaL Lhe dlsLrlcL cuL hlgh cosLs such as Leacher healLh care and recommended converLlng Lhe 23 percenL of schools LhaL scored Lhe lowesL on sLandardlzed LesLs Lo prlvaLlzed charLerschool sLaLus 1eachers ln SeaLLle passed a resoluLlon of noncompllance wlLh Mcklnseys sLudy of Lhe SeaLLle ubllc Schools ln proLesL49 Among oLher books and arLlcles 1he WlLch uocLors wrlLLen by 1he LconomlsL edlLorlnchlef !ohn MlckleLhwalL and Adrlan Wooldrldge presenLs a serles of blunders and dlsasLers alleged Lo have been Mcklnseys consulLanLs faulL Slmllarly uangerous Company 1he ConsulLlng owerhouses and Lhe 8uslnesses 1hey Save and 8uln by !ames CShea and Charles Madlgan crlLlcally examlnes Mcklnseys work wlLhln Lhe conLexL of Lhe consulLlng lndusLry edlL Calleon lnslder Lradlng scandal See also CupLakumar8a[araLnam ln March 2011 longLlme Mcklnsey Lop senlor parLners and lndlan School of 8uslness cofounders 8a[aL CupLa and Anll kumar (wlLh CupLa also havlng served as managlng dlrecLor of Lhe flrm) were charged by Lhe SLC for lllegally Llpplng Lhe Calleon Croup hedge fund wlLh lnslder lnformaLlon abouL Coldman Sachs rocLer Camble and oLher Mcklnsey cllenLs CupLa and kumar were close frlends of each oLher and of Calleon founder 8a[ 8a[araLnam3031 1he SLC alleged ln lLs clvll admlnlsLraLlve acLlon LhaL CupLa who had slnce reLlred as a senlor parLner of Mcklnsey and was servlng on Lhe board of Coldman Sachs had passed lnformaLlon Lo Calleon abouL Coldman LhaL ylelded nearly $20 mllllon ln proflLs and losses avolded32 1he SLC also alleged LhaL CupLa passed lnformaLlon Lo 8a[araLnam wlLhln 4 mlnuLes of Lhe compleLlon of a speclal Coldman Sachs board meeLlng Lo approve a caplLal ln[ecLlon by Warren 8uffeLL durlng Lhe helghL of Lhe flnanclal crlsls ln 2008 CupLa also sLood Lo proflL as wouldbe chalrman of Calleon lnLernaLlonal and chalrman of new Sllk 8ouLe33 CupLa has malnLalned hls lnnocence and counLersued Lhe SLC3334 ln AugusL 2011 boLh CupLas and Lhe SLCs sulLs were dropped33 CupLa surrendered Lo Lhe l8l on crlmlnal charges on CcLober 26 2011 Lhe case ls ongolng36 kumar who pleaded gullLy and was flned nearly $3 mllllon for hls role ln Lhe scandal provlded lnslder lnformaLlon on Lhe acqulslLlon of A1l 1echnologles by AMu whlle aL Mcklnsey3738 Pe was Lhe governmenLs sLar wlLness ln uS v 8a[araLnam39 ln uS v 8a[araLnam lL was also revealed LhaL a Lhlrd Mcklnsey parLner uavld alecek now deceased aL age 37 had been lnvolved ln Lhe lnslder Lradlng scandal Lhough dld noL accepL money from 8a[araLnam60 1he flrm has come under slgnlflcanL conLroversy for havlng lLs former leaders and senlor parLners (CupLa and kumar) as well as a rlslng sLar" [unlor parLner (alecek) all lmpllcaLed wlLh Lhe Calleon Croup and lnslder Lradlng ln Lhe llnanclal 1lmes ! 8oberL 8rown !r a securlLles law professor aL Lhe unlverslLy of uenver SLurm College of Law sald Lvery repuLable company and advlsory enLlLy lncludlng lnvesLmenL banks and Mcklnsey has goL Lo be horrlfled by Lhls"61