McKinsey is back in the headlines.
The Wall Street Journal reported Wednesday that the Justice Department is conducting a criminal investigation into the management consulting firm over how it previously advised opioid companies on their sales strategies.
The “Big Three” company has already raised eyebrows over some of the work it has done, including advising Enron and helping the Saudi government diversify its economy.
But another, perhaps equally notable, thing to know about the management consultancy is its history as an incubator for top leadership talent.
Fortune reported last year that 17 Fortune 500 CEOs were McKinsey alumni at the time, including Alphabet boss and man of the moment Sundar Pichai.
John Malone, president of Liberty Media, Sheryl Sandberg, former COO of Meta Platforms, James Gorman, former CEO of Morgan Stanley, and Delphine Arnault, director of Louis Vuitton, are among others who worked there. Transportation Secretary Pete Buttigieg and Sen. Tom Cotton (R-Arkansas) also worked at the company.
Last year, leadership professor Graham Ward told the Financial News that McKinsey earned its status as a CEO factory by instilling good analytical skills in its employees and spending heavily on its learning and development programs.
“McKinsey partners have three strengths: they are deeply analytical, have broad industry coverage by being parachuted into client service teams in various situations, and a massive internal investment in their learning and development,” said Ward, who was also a former head of European equities at Goldman Sachs and now works at French business school INSEAD.
In the post-pandemic era, employees may not develop their skills in the same way.
Last year, the Wall Street Journal reported that there wasn’t enough work for new hires at big consulting firms, leaving some employees making $175,000 to sit around and do nothing.
Meanwhile, a former McKinsey partner recently told Business Insider that the firm has clearly overhired in recent years, with rising interest rates causing client demand to dry up.
McKinsey did not immediately respond to a request for comment from BI.
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