McKinsey Company has been provided strategic advice to corporations and other organizations since 1926, when James O. McKinsey, a University of Chicago professor, opened a consulting office in Chicago.
The firm s second office was opened in New York City in 1932.
Marvin Bower joined the firm in 1933 and became the firm s head after McKinsey left to become chief of Marshall Field Co.
In 1935, McKinsey left the firm temporarily to serve as the Chairman and CEO of client Marshall Field's.
Also in 1935, McKinsey merged with accounting firm Scovell, Wellington Company, creating the New York-based McKinsey, Wellington Co. and splitting off the accounting practice into Chicago-based Wellington Company.
Marvin Bower is credited with establishing McKinsey's values and principles in 1937, based on his experience as a lawyer.
The firm developed an up or out policy, where consultants who are not promoted are asked to leave. in 1937.
The New York office purchased exclusive rights to the McKinsey name in 1946.
Guy Grockett stepped down as managing director in 1950, and Marvin Bower was elected in his place.
McKinsey s profit-sharing, executive and planning committees were formed in 1951.
McKinsey opened its first international office in London in 1959, and has expanded steadily since.
After Bower stepped down in 1967, the firm s revenues declined.
In 1971 McKinsey created the Commission on Firm Aims and Goals, which found that McKinsey had become too focused on geographic expansion and lacked adequate industry knowledge.
Daniel also began McKinsey s knowledge management efforts in 1987.
By the end of his tenure in 1988 the firm was growing again and had opened new offices in Rome, Helsinki, S o Paulo and Minneapolis.
In 1994, Rajat Gupta became the first non-American-born partner to be elected as the firm s managing director.
McKinsey does much of its pro-bono work through the SSO, whereas a Business Technology Office BTO , founded in 1997, provides consulting on technology strategy.
An October 1, 2000 article in the New York Times described the compulsory mini-courses that McKinsey and its two largest rivals Boston Consulting and Bain offered their hyper-educated young new recruits.
In 2001, McKinsey launched several practices that focused on the public and social sector.
Though McKinsey avoided dismissing any personnel following the decline, the decline in revenues and losses from equity-based payments as stock lost value, together with a recession in 2001, meant the company had to reduce its prices, cut expenses and reduce hiring.
Also in 2003, the firm established a headquarters for the Asia-Pacific region in Shanghai, China.
By 2004, more than 60 percent of McKinsey s revenues were generated outside the United States.
Gupta was convicted in June 2012 of four counts of conspiracy and securities fraud, and acquitted on two counts.
In February 2018, Kevin Sneader was elected as Managing Director.
He is serving a three-year term that began on July 1, 2018.
|Company Name||Founded Date||Revenue||Employee Size|
Boston Consulting Group1963
Bain & Company1973
Jefferson Wells International-
Booz Allen Hamilton1914