mckenzie & company
- Founded
- 1926-01-01 in Chicago, Illinois, USA
- Headquarters
- New York City, USA
McKinsey & Company is a global management consulting firm founded in Chicago in 1926 by James O. McKinsey. It is widely regarded as one of the most prestigious strategy consultancies, part of the "MBB" trio alongside Boston Consulting Group and Bain & Company. The firm advises the world's largest corporations, governments, and non-profits on strategy, operations, technology, and sustainability. With approximately 38,000 employees and $16 billion in revenue in 2023, McKinsey operates through a partnership structure led by Global Managing Partner Bob Sternfels. The firm is known for its thought leadership, including the McKinsey Quarterly and proprietary frameworks like the 7S model. However, it has faced significant controversies, including its advisory role in the opioid crisis and work with authoritarian regimes, leading to ongoing investigations.
Detailed Review
History and Founding
McKinsey & Company was established in 1926 as James O. McKinsey & Company in Chicago. The firm initially focused on applying accounting principles to management. In the 1930s, Marvin Bower joined and shaped the firm's modern values: client-first, professional independence, and an up-or-out promotion system. Under Bower's leadership, McKinsey expanded internationally in the 1940s–1950s and became a pioneer in corporate strategy consulting. The firm developed influential frameworks such as the McKinsey 7S model and the growth-share matrix, which have shaped business strategy for decades.
Business Model and Operations
McKinsey operates as a partnership, with a global managing partner as the top executive. It generates revenue through fee-based consulting engagements across industries and functions, including digital transformation, AI, sustainability, and mergers and acquisitions. The firm also offers proprietary software and data platforms via McKinsey Solutions and maintains a digital advisory arm called McKinsey Digital. McKinsey.org is its non-profit arm providing free programs to nonprofits and individuals.
Market Position and Competitors
McKinsey is consistently ranked among the top three management consultancies globally, competing with Boston Consulting Group, Bain & Company, Deloitte Consulting, and other strategy firms. Its brand prestige attracts top talent and high-profile clients, but recent scandals have dented its reputation. The firm remains a dominant player in the industry, with a strong presence in North America, Europe, Asia, and the Middle East.
Controversies and Challenges
McKinsey has faced intense scrutiny for its work with Purdue Pharma on marketing OxyContin, contributing to the US opioid crisis. The US Department of Justice has investigated McKinsey for potential obstruction of justice. The firm also consulted for Enron before its collapse and has advised authoritarian governments such as Saudi Arabia and Russia, as well as major fossil fuel companies. These controversies have led to reputational damage and ongoing legal challenges.
Recent Developments
In 2025, McKinsey elected 224 new partners, including a record 66 women. The firm is investing heavily in AI and technology, claiming to have 25,000 AI agents among its workforce (though this figure includes automated tools). Recent layoffs in 2023–2024 affected about 1,400 employees as part of a restructuring toward technology and AI capabilities.
Key Products
McKinsey Solutions
Proprietary software, data, and talent solutions that complement consulting engagements, such as performance analytics tools.
McKinsey & Company (brand)
The core management consulting service covering strategy, operations, finance, and sustainability.
McKinsey.org
A non-profit arm offering flagship programs at no cost to nonprofits and individuals, focusing on sustainability and education.
McKinsey Quarterly
A business magazine publishing McKinsey's thought leadership on strategy, technology, and management.
McKinsey Digital
A service line helping clients with technology strategy, digital transformation, AI, and product modernization.
Offices & Headcount
38000 employees (approx.)
Key Persons
- James O. McKinsey
Founder