How McKinsey Became One Of The Most Powerful Companies In The World

When the most powerful executives in the world have a problem they just can’t crack, many of them turn to McKinsey – a prestigious and secretive consulting firm that has been influencing business and government decisions for decades. But now, as consumers require more transparency, the company has been thrust into the spotlight.

 

 

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influential in Western Europe they have
been for half a century
whether that’s England or Germany or
elsewhere but also some recent New York
Times reporting has shown that they are
very involved with China a lot of
state-owned enterprises Saudi Arabia
South Africa is a great example there
the company was ensnared in a government
corruption scandal McKinsey repaid about
seventy four million dollars in fees and
while not admitting legal wrongdoing has
apologised for its involvement global
managing partner Kevin Schneider told
CNBC Africa I think we’ve learned many
lessons from the saga not the least of
which is when you make a mistake it’s
best to say sorry quickly and clearly
and then take steps to ensure you don’t
repeat the errors and so the second

Eric Schmidt Has Lessons to Pass Along

In a new book, the former Google chairman pays tribute to his late Silicon Valley mentor

Pinned in the doorway of Eric Schmidt’s snug corner office in Mountain View, Calif., is a comic strip that neatly sums up what the longtime Google chief executive wants you to know about himself and the company.

The cartoon, custom-created for Mr. Schmidt, shows Google’s technology rivals making supposed apologies. There’s Facebook ’s Mark Zuckerberg saying, “Sorry…but we’re still right.” Then there’s Apple Inc.’s Tim Cook saying, “You’re holding it wrong.” Finally, there’s Mr. Schmidt, who says, “We screwed up. Sorry.”

This is the Google way, perfected under Mr. Schmidt: high-minded, self-assured and a little smug.

Mr. Schmidt says that his approach is derived from the many lessons he learned from his late mentor, the Silicon Valley management guru Bill Campbell: “If you make a mistake, admit it, and do it right now. And if you didn’t make a mistake, don’t admit it.”

.. While it is now de rigueur for startup founders to take on formal mentors, Mr. Campbell was the beta version of the trend, personally counseling Mr. Schmidt, Steve Jobs, Facebook’s Sheryl Sandberg and many other Silicon Valley stars. A former Columbia University football coach who became a wealthy tech executive and adviser, Mr. Campbell was known for getting through to type-A people who might otherwise struggle to think of themselves as part of a team.

Mr. Schmidt credits Mr. Campbell for talking him off the cliff when he threatened to quit Google early on after being asked to relinquish his title of chairman. “Your pride is getting in the way,” Mr. Campbell told him, Mr. Schmidt recalls.

Later, Mr. Campbell helped to soften Mr. Schmidt’s edges as a boss. “Like, for you, I’d say: ‘You’re the best writer I’ve met in your generation,’ ” Mr. Schmidt says, with considerable overstatement. “Then I’d read something and say, ‘Well, you missed something, you could do better.’ Notice how because I’ve praised you, now you want to be a better person.”

.. When asked about Apple founder Steve Jobs, with whom Mr. Schmidt had a public falling-out over Google’s development of rival mobile software, Mr. Schmidt diplomatically observes, “When Steve was upset, he was loud.” He hastens to add: “Steve was a good friend, and I miss him terribly.”

Mr. Schmidt’s arrival on the self-help circuit comes amid a tide of leadership missives from wealthy entrepreneurs. The hedge-fund billionaire Ray Dalio has spent more than a year evangelizing his book of “Principles,” which tells employees to argue with one another and rank each others’ performance in real time. Mr. Schmidt, who says he knows Mr. Dalio well, calls that approach “sort of the extreme.” He prefers to deliver hard feedback behind closed doors. He says that he steered clear of Wall Street early in his career because “it wasn’t forgiving…it wasn’t tolerant.”

Google under Mr. Schmidt was tolerant—maybe too much so, according to some of its own employees. Staffers world-wide staged a walkout last year after it was reported that the company paid millions in exit packages to top executives who left after being accused of sexual harassment. Google covered up the reasons for their departures, according to documents filed in a recent civil lawsuit. The company says it has since made changes to the workplace.

Mr. Schmidt’s late mentor was touchy-feely in a more innocent manner, Mr. Schmidt says. His description of Mr. Campbell carries a whiff of the “Saturday Night Live” sketches lampooning a family that constantly kisses one another.

Mr. Campbell “would walk into a room and everyone would stand up, and he would hug every person in the perimeter, including the assistants—two women and a man,” Mr. Schmidt says. “If you went to visit him, you had to hug his secretary, and then you had to hug him, and then you had to watch him hug her.”

Mr. Schmidt says he hugs subordinates less frequently.

Sheryl Sandberg Can’t Have It All

The truth is, Sheryl Sandberg has been preoccupied with her own P.R. — and has been a master of the cold science of optics — ever since she was a teenager. One of the most revealing stories in “Lean In” is about her senior year, when she was voted Most Likely to Succeed. Believing that the title would interfere with her chances of getting a date to the biggest party of the year — “Who wants to go to the prom with the smartest girl in the class?”— she got a friend on the yearbook to remove the designation.

.. Much of the advice Sandberg gives in “Lean In” is, frankly, unapologetically strategic. And why ever not, when the obstacles to female advancement can seem as high as the moon? But controversially, much of it was also retrograde, a nod to realpolitik: Ask for a raise because women as a group tend to be underpaid, not because you personally deserve it. Note that someone more senior to you suggested that you ask for this salary negotiation in the first place. Be “relentlessly pleasant,” to borrow a phrase from Mary Sue Coleman, president of the Association of American Universities.

.. What makes Sandberg’s current behavior so unsavory is that she put corporate interests — and her own image — ahead of the needs of democracy. She would sooner downplay Facebook’s involvement in a national security crisis than compromise the integrity of her reputation. And in so doing, Sandberg, one of the country’s most influential and renowned feminists, may have contributed to the historic loss of the first viable female candidate for president of the United States.

What Facebook Knew and Tried to Hide

Even when the Facebook leaders understood the problem, they tried to hide it.

Right after the election Zuckerburg was dismissive of the idea that Fake News influenced the election.

People within the company thought he was out of touch.

At the time Facebook was under pressure.

Trump had won the election using social media, but Facebook was dismissive.

Facebook employees saw the tip of the iceberg .  They had been following Russian

Mark wanted to find a technical fix.

Sheryl was thinking about the legal risk and was wondering whether they would find out things they didn’t want to know.  Sheryl was thinking about what the consequences would be.

Sheryl yelled at the security team for investigating Russian interference without formal approval.

The leadership was concerned that Washington was controlled by conservatives who would have an adverse reaction to an investigation or efforts to curb this activity.  Conservatives already think Silicon Valley is a bunch of hippies.

There was pressure within Facebook not to publish anything linking activity back to Russia.  Sheryl(?) also signed off on a policy not to take down the Russian troll accounts.

Mark Zuckerburg was traveling the country, milking cows, and acting as though he wanted to run for President.

Sheryl Sandberg was running her own “Lean-In” brand.

Alex Stamos (Security Chief) briefs the audit committee and the board’s response is to yell at Mark(?) and Sheryl(?)

The leadership holds a big meeting and Sheryl yells at Alex Stamos for

  • not briefing her fully
  • admitting that they hadn’t fully got a grip on the situation
  • suggesting that Russia would likely do this again in the future

Alex has gotten in trouble in the past for being too transparent

The Cambridge Analytical Scandal illustrates:

  • The consequences of surveillance capitalism
  • The potential of Facebook to influence elections

Apple CEO Tim Cook castigates Facebook for their business model.

Facebook conducts an advertising campaign and privately goes on attack using the Washington PR opposition research campaign, which uses the NTK network which publishes propaganda.

Confronted with a Propaganda Scandal, they turn to a PR campaign to create their own Propaganda.

Attacks Apple and Tim Cook.  Attack George Soros, arguing the Facebook’s criticism was masterminded by George Soros.  In taking on Soros they are getting into the smear and conspiracy business.

 

Related:

Damage Control at Facebook: 6 Takeaways From The Times’s Investigation