The Firm: The Story of McKinsey and Its Secret Influence on American Business (52 page)

engineering,
24
,
27
,
38
,
51
,
170
,
186
–87

Engwall, Lars,
252

Enron: accountability at,
244

accounting fraud at,
246
–47

collapse of,
244
,
246
–47,
261
,
290

compensation at,
245

criticisms of,
244

as culmination of capitalism,
261

culture at,
241
,
242
,
243
,
244

Gladwell story about,
262
–63

and Gupta as managing director,
239
–52

impact on McKinsey of collapse of,
247
,
249
–52,
270

lobbyists for,
241

McKinsey confidentiality about,
58

as McKinsey failure,
2
,
86

McKinsey as favored advisor to Skilling at,
7

McKinsey fees from,
246

McKinsey liability for collapse of,
247

McKinsey relationship with,
239
–40,
242
–44,
247
,
248
–51

mission of,
242

off-balance-sheet financing at,
243
,
244
,
245
,
247
,
249
,
288

popularity of,
241

rank and yank system at,
244
–45

reputation of,
243
–44

revenues of,
241

risk management at,
245

as Skilling client,
239
–40

Skilling named president of,
240
–41

as trading firm,
246

turnover at,
244
–45.
See also
Skilling, Jeff

Equal Employment Opportunity Commission,
207

Ernst & Young,
199
,
200
,
201
,
328

Europe: American investment in,
78

McKinsey expansion into,
55
,
56
,
73
–80,
95
.
See also specific nation or city

evaluations, McKinsey,
83
,
86
,
133
,
159
,
169
,
204
–5,
209
,
325
,
331
,
332

The Evolution of Strategic Management
(Gluck),
141
–42

“Excellence” folio,
147
–48

executive committee, McKinsey: of Bower,
66
,
94
,
100
,
138
,
277

of Daniel,
277

McKinsey power structure and,
121

executive compensation,
65
–66,
82
,
105
,
121
,
248
,
302
,
334

experience curve, BCG,
109
,
110

Export-Import Bank,
80

Facebook,
327
,
334

Falvey, Mary,
106

Farr, Chuck,
182

Farrell, Diana,
218
,
284
,
290
–91

Fastow, Andy,
241
,
246
,
249

Federal Bureau of Investigation (FBI),
283
,
318

Federal Incomes and Excess Profits Tax Laws
(McKinsey),
21

Federal Reserve,
166

Federal Trade Commission Act (1914),
18

Federated Department Stores,
204

fees, McKinsey.
See
revenue/fees

Feiger, George,
166
,
208
,
227
,
232

Ferguson, Roger,
216
,
223
,
284

Fidelity Investments,
175
,
305

financial institutions group (FIG), McKinsey,
277

Financial Management
(McKinsey),
21

Financial Market Meltdown
(Mellyn),
289

Financial Services Authority,
285

financial services industry: and capitalism concerns,
261

criticisms of,
260

culture/values of,
320

McKinsey activities with,
230
–33

McKinsey alumni and,
231
–32,
286

McKinsey role in bubble in,
286
–94

profits in,
291
.
See also
banking industry; Wall Street;
specific organization or person

Fiorina, Carly,
254

Firm Strategy Initiative (FSI) (1995, 1997),
226
,
233
–34

First Boston,
253
,
327

First Chicago,
287

First Interstate Bancorp,
189

Fisher, Jim,
226
–67

Five Forces theory,
90

Fletcher, Dick,
38

Flynn, Tim,
281
,
322

Foote, Nathaniel,
216
,
223

Forbes
magazine,
165
,
168
,
185
,
310

Forbis, John,
118

Ford, Henry,
11
,
19
,
26
,
109
,
190

Ford Motor Company,
19
,
51

Fortune
magazine: best companies to work for survey of,
328

Bower interview for,
43

boxing ring cartoon in,
167

Enron stories in,
241
,
246

executive compensation article in,
65

and expansion in consulting services,
93

GM story in,
184

Godrej comments about Gupta for,
314

and Gupta resignation from Goldman Sachs board,
313

Guzzardi article in,
92

and hiring McKinsey just to prove a point,
188

Huibregtsen comment about fees for,
204

Katzenbach comments about McKinsey recruiting for,
171

Lafley’s comments about Gupta for,
314

leadership production story in,
295

McKinsey consultant profiles in,
156

and McKinsey as leadership creator,
233

McKinsey profile in,
206
–7

research at McKinsey story in,
215

strategic planning survey by,
140
.
See also
Huey, John

Foster, Dick,
217
,
247
,
249
,
250
,
263

four-box matrix (BCG),
88
,
109
,
113
,
140
,
143
,
144

Four Roses Whiskey,
54

Foy, Peter,
139
–40,
162
,
165
,
176

frameworks, McKinsey,
143
–45

Fraser, George MacDonald,
47

Fraser, Jane,
248

Frazer, George,
14

Frazer and Torbet,
14

Frito-Lay,
211

From Higher Aims to Hired Hands
(Khurana),
65
,
124
–25

Fuld, Dick,
230

Fuller, Joe,
198

The Functions of the Executive
(Barnard),
55

The Future of Management
(Hamel),
333

Gaither Commission,
70

Galleon fund,
308
,
310
,
313
,
314
,
315
,
316

Gandhi, Mahatma,
314

Gay, Edwin,
26

GB Voyager Multi-Strategy Fund,
313

Geigy,
79

General Electric (GE): in American Century,
17

and BCG-McKinsey competition,
113
–15

Bedaux as consultants for,
27

decentralization of,
76

diversification at,
63

government contracts for,
69

and hiring McKinsey to prove a point,
189
–90

McKinsey alumni and,
282

McKinsey lending advice to,
291

mergers and,
17

multidivisional structure of,
18

NBC purchase by,
189
–90

specialization at,
215

strategic business units at,
114
–15

strategic planning at,
113
–15

General Foods,
64

General Mills,
295

General Motors (GM): in American Century,
17

bankruptcy of,
184

Drucker book about,
90

growth and control dilemma at,
17

Japanese as competitors of,
183

McKinsey as consultant to,
2
,
86
,
174
,
181
–84

as McKinsey failure,
191

McKinsey impact on,
86
,
174
,
181
–84,
327
,
332

organization/reorganization of,
54
,
55
,
183
–84

Patton Work for,
65

Sloan impact on,
19
,
54

Smith as CEO of,
177

General Post Office, British,
76
,
77
,
78

General Survey Outline (GSO), McKinsey’s,
22
–23,
25
,
28
,
141

generalists,
94
,
120
–23,
133
,
139
,
142
–46,
197
,
201
,
215

George, Bill,
313

George Fry & Associates,
42

Germany: cost cutting/layoffs in,
212
–14

criticisms of McKinsey in,
212
–14

McKinsey activities in,
87
–88,
107
–8,
157
–61,
165
,
212
–14,
279

McKinsey European expansion and,
79
,
228

McKinsey office managers in,
162

Peters and Waterman’s work and,
150

power of McKinsey office in,
108

“the McKinsey society” in,
212
–14

Gerstner, Lou,
7
,
41
–42,
81
–82,
217
,
233
,
303
–4

Ghemawat, Pankaj,
56

Gillette,
314

Gingrich, Newt,
232

Gladwell, Malcolm,
262
–63

Glass-Steagall Act (1933),
18

Glassdoor surveys,
295

Glennan, Keith,
68

“global profit pools,”
302
–3

globalization.
See
growth/expansion, McKinsey;
specific nation or city Globe and Mail
(Canada): Barton comments to,
300

Gluck, Fred: appearance of,
196
,
219

Barton compared to,
299

and BCG as competitor,
116
,
140
,
264

Carnegie and,
194
–95

clients and,
194
–96,
197
,
198
,
245

compensation for,
207
–8

Daniel and,
135
–36,
142
,
146
,
196
–97

Davis recommitment to era of,
278

early years at McKinsey of,
194
–95

elections as managing director of,
153
,
168
,
197
,
198

“Excellence” folio and,
147

focus of McKinsey and,
139

and
Fortune
-Huey profile of McKinsey,
206

generalist-specialist debate and,
142

and greed at McKinsey,
219

and growth/expansion of McKinsey,
193
,
198
,
221

Gupta and,
224
,
225

Henzler and,
158

and intellectualization of McKinsey,
164

and IT consulting,
200
–203

knowledge focus of,
145
,
197
,
214
–18,
223
,
278

legacy of,
215
,
219
,
271

McKinsey bureaucracy and,
277

McKinsey hiring of,
194

McKinsey image and,
194

and McKinsey as Jesuits of Capitalism,
215
–20

McKinsey revenues/fees and,
197
,
203
,
205
,
219

McKinsey structure/organization and,
142

personal life of,
219
–20

personal and professional background of,
170
,
193
–94

Peters-Waterman work and,
147
,
148

post-McKinsey activities of,
220

practice bulletins of,
141
,
278

promotions of,
197

reengineering and,
211

and self-image of McKinsey,
166

sharing culture and,
143

and strategy initiative,
146
,
153
,
197

Superteam of,
140
–42

technology interests of,
193
,
196

writings by,
141
–42

Godrej, Adi,
314