mckenzie & company

History and Founding

McKinsey & Company was founded in 1926 by James O. McKinsey as James O. McKinsey & Company in Chicago. The firm initially focused on applying accounting principles to management. After McKinsey's death, Marvin Bower, who joined in the 1930s, transformed the firm into a management-focused consultancy. Bower is credited with shaping McKinsey's modern culture, including its emphasis on professionalism, client confidentiality, and the up-or-out promotion system. Under his leadership, the firm expanded internationally in the 1940s and 1950s, opening offices in London and other global cities.

Business Model and Services

McKinsey operates as a private partnership. Its services encompass strategy, operations, digital transformation, sustainability, and organizational performance. The firm pairs traditional consulting with proprietary software, data assets, and talent solutions through its "Solutions" offerings. McKinsey also engages in thought leadership through the McKinsey Quarterly and other publications. The firm's nonprofit arm, McKinsey.org, provides free skill-building programs for nonprofits and individuals.

Market Position and Competition

McKinsey is part of the "MBB" trio of top-tier strategy consultancies, alongside The Boston Consulting Group and Bain & Company. It is considered the oldest and largest of the three. The firm is known for its fiercely competitive hiring process, recruiting primarily from top business schools and advanced degree programs. McKinsey has maintained its status as one of the most selective employers globally.

Controversies and Legal Issues

McKinsey has faced significant criticism for its role in the opioid crisis, particularly for advising Purdue Pharma on increasing OxyContin sales. In 2026, McKinsey agreed to contribute $125 million to Purdue Pharma's bankruptcy settlement. The firm also faces a US Justice Department criminal investigation into its opioid-related work and potential obstruction of justice. Additionally, McKinsey draws scrutiny for its work with fossil fuel producers and authoritarian governments.

Recent Developments

In 2025, McKinsey promoted 224 new partners, the largest class in its history, with 66 women—the highest share ever. The firm has also invested heavily in digital and AI capabilities, reportedly operating around 25,000 AI agents alongside human employees. McKinsey cut approximately 5,000 staff while adding AI capabilities to maintain team size and reduce costs. The firm continues to recruit from top business schools and advanced degree programs.