This episode is brought to you by:

Visible Alpha. The team at Visible Alpha built a platform to analyze consensus data and financial metrics on over 6,000 publicly traded companies. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns

Scribe. Scribe is the trusted transcription provider for the business and investing community. Scribe is designed to accurately transcribe messy, real-world audio and is unique in that it’s optimized for the complexities of enterprise audio, such as company and product names, currencies, accents and numbers. Visit kensho.com/breakdowns to learn more and unlock your free trial.

Show Notes

[00:02:35] - [First question] - What is McKinsey & Company and what management consulting looks like

[00:04:52] - Their project-based model and what’s being bought and sold when McKinsey makes a sale

[00:07:36] - The scale of the business and how profitable it is

[00:08:58] - How many projects McKinsey is running and how big of an opportunity management consulting is

[00:10:37] - McKinsey’s famous ownership model and how it works

[00:12:49] - The history of McKinsey, who started it, and how it has evolved in modern times

[00:19:01] - How the firm has changed in the post-Bower era

[00:22:12] - McKinsey’s biggest competitors, their dynamics of practice groups, and vertical projects

[00:25:46] - How a CEO or top level manager decides which management consulting firm to do business with

[00:27:38] - The overview of a normal project for McKinsey, what they sell, and costs associated with it

[00:33:07] - The process of marketing and sales and their talent flywheel

[00:36:07] - The traditional side of their sales and marketing and the McKinsey Quarterly

[00:37:44] - How someone can pitch business to McKinsey and their sales process

[00:39:47] - What makes the organization special and unique from a team or work perspective

[00:41:01] - Their talent model and how they find and develop their talent

[00:45:14] - How their staffing model is unique and how they tie feedback into staffing

[00:51:06] - Examples of the scandals that have happened and why

[00:55:24] - The biggest growth levers of the business looking forward

[01:02:03] - Things that could happen in a macro environment to aid McKinsey’s future

[01:03:52] - What could happen to make McKinsey a shell of its former self

[01:05:38] - Where Romeen would direct people to go for further study; The Firm

[01:06:31] - Lessons for builders and investors when studying McKinsey’s story