McKinsey & Co. tried to rally its partners with optimistic statements and blasts of rock and rap music in Copenhagen earlier this month, trying to boost morale during a turbulent period for the giant consulting firm.
Global managing partner Bob Sternfels told fellow partners at an event in mid-April that McKinsey was expecting a strong 2024 after the challenges of the past 18 months. A person familiar with the situation called it a “turn the page” moment, according to a person familiar with the situation.
Some McKinsey partners were dissatisfied with the way the top tier was managing the firm’s external perception and the ongoing reduction of its roles, according to other people familiar with the matter, who asked not to be named discussing private matters.
McKinsey is struggling on many fronts at a time when the industry as a whole is seeing declining demand for consulting services. The company has warned Some 3,000 of its consultants said their performance was unsatisfactory and needed to be improved. It was also cutting hundreds of jobs in its technology and other divisions.
At an internal event in Denmark, Sternfels encouraged McKinsey partners to raise any concerns or concerns about what the firm was doing that might undermine its values. “I hope we shout out. I hope we work together… I hope we fight something together,” he said, according to a person familiar with his comments.
The musical soundtrack included a selection of hits from pop artists, including American rapper Eminem and singer Bob Marley. Also performed was “Tubthumping” by former British rock bank Chumbawamba, with its signature lyrics: “I get knocked down, but I get back up. You can never hold me.”
Sternfels said McKinsey still has opportunities to help organizations solve their toughest problems and that the company should strive to differentiate itself in what it does. He also tried to reassure his colleagues. “This should be our promise: no matter how long you work for our firm, the development you will receive with us will be better than anywhere else on the planet,” he said.
“As they have for decades, our partners regularly gather in person to build connections, strengthen our culture, discuss firm strategy and reinforce our commitment to being one global firm,” McKinsey said in an emailed statement, referring to the internal meeting. in Denmark.
McKinsey has faced political backlash in the US over its interactions with China and Saudi Arabia and is still reeling from its past relationships with some of the world’s largest opioid producers. The firm had to pay hundreds of millions of dollars in compensation. civil penalties and legal settlements to resolve allegations that it helped fuel the deadly drug epidemic in the United States. The Justice Department is conducting a criminal investigation into McKinsey’s past opioid-related consultations, The Wall Street Journal reported last week.
The consulting firm has about 3,000 partners worldwide, including about 750 senior partners, and the number has increased over the past few years. Hundreds of McKinsey partners attending the meeting in Denmark were encouraged to support the company’s sustainability goals by riding electric taxis or bicycles to the meeting.
That same week, McKinsey co-sponsored an event in Copenhagen for about 700 business leaders, which featured a speech by Republican and former US Vice President Mike Pence. Others who attended or spoke at the client event included former US Treasury Secretary Larry Summers, Danish Prime Minister Mette Frederiksen and Mads Nipper, chief executive of Danish energy giant Orsted.