When McKinsey Comes to Town by Walt Bogdanich and Michael Forsythe Summary

When McKinsey Comes to Town investigates McKinsey & Company’s global influence on corporations and governments, exposing its role in crises like the opioid epidemic and the 2008 financial crash. The book critiques McKinsey’s profit-driven strategies, ethical lapses, and cultural prioritization of efficiency over societal welfare, using case studies like U.S. Steel’s restructuring in Gary, Indiana.

This book is essential for professionals in consulting, corporate governance, or public policy, as well as readers interested in corporate ethics and accountability. It offers critical insights into how management decisions impact society, making it valuable for those examining power dynamics in business.

Yes—the book provides a meticulously researched exposé of McKinsey’s controversial practices, blending investigative journalism with analysis of corporate ethics. Its revelations about conflicts of interest and real-world consequences make it a compelling read for understanding modern consulting’s hidden costs.

The authors accuse McKinsey of prioritizing profit over ethics, enabling harmful client actions (e.g., opioid manufacturers and authoritarian regimes), and avoiding accountability through nondisclosure agreements. Case studies highlight environmental damage, labor cuts, and safety compromises tied to its recommendations.

McKinsey advised pharmaceutical firms like Purdue Pharma on boosting opioid sales through aggressive marketing tactics, despite knowing the drugs’ addictiveness. The book argues this consultancy directly contributed to widespread public health devastation, with McKinsey later settling lawsuits but avoiding full accountability.

Key examples include U.S. Steel’s layoffs and safety compromises in Gary, Indiana; Disneyland’s maintenance cuts leading to fatal accidents; and Saudi Arabia’s use of McKinsey strategies to consolidate authoritarian power. These cases reveal systemic risks in McKinsey’s data-driven, profit-first approach.

The book questions whether consultancies like McKinsey share accountability for clients’ harmful actions. It challenges the “neutral advisor” narrative, arguing firms must weigh societal consequences when providing strategies tied to layoffs, deregulation, or public health crises.

McKinsey’s “up or out” promotion system and performance-based compensation incentivize prioritizing client growth over ethical considerations. Employees face pressure to deliver short-term profits, often ignoring long-term social or environmental impacts.

Notable quotes include:

• “McKinsey might have ‘just been an advisor’ but this advice had serious consequences” – underscoring accountability gaps.
• “A relentless focus on economic profit… without sacrificing safety” – revealing contradictions in corporate promises.

Unlike abstract critiques, this book uses documented case studies to link McKinsey’s strategies to tangible harm. It parallels works like The Firm by Duff McDonald but emphasizes recent scandals and global policy impacts.

As consulting firms expand into AI and climate policy, the book’s warnings about unregulated corporate influence remain urgent. It serves as a cautionary tale for balancing innovation with ethical oversight in evolving industries.

While not prescriptive, it implies stricter regulatory oversight, transparency mandates, and ethical frameworks for consultancies. The authors stress aligning business strategies with societal well-being rather than short-term gains.