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Yes! And...
Yes! And...
Missed context - Because you’re not a full-time employee (even if you’re working 5 days a week) you may not be included on all-hands emails, announcements and so on and so you always have to work hard to gain the full context of a client. Tightly scripting a performance doesn’t leave room for new contexts to emerge during the performance. Instead there should always be room for new context to emerge and get integrated into the performance in real-time. Missed feedback - It’s not uncommon as a consultant to be the most proficient powerpoint user in the org (or at least your portion of the org). This has benefits but it also has the unintended consequence of making everything you touch look “finished”. And finished work gets very different feedback from people than raw materials and thinking. So sometimes it’s important to un-design and un-polish your work, to invite people onto the stage to co-create the performance - this way you ensure that you get the appropriate feedback.
“thinking on your feet” is about the balance between deflecting decisions for further analysis and providing the answer there and then.
learning to provide an answer that you believe in but leaves room for revision later is key. The real game that’s being played here is not one of being right or wrong - it’s the executive asking two questions at once - firstly “how much do you know?” and secondly “can you improv?” to understand how useful you’re going to be in the theatre of work.
There’s a fine line between reacting to a situation in the room and bullshitting. As a consultant this is especially hard to avoid. Your default mode of operating is the liminal space between industries, businesses and markets. A few times a year I’m forced to learn something new from scratch. This forces us to work in spaces where we’re often the least knowledgeable about a specific business (even if we are experts in the industry… And sometimes we’re experts at a discipline but neither knowledgeable about the business or the industry).
·tomcritchlow.com·
Yes! And...
How McKinsey Destroyed the Middle Class - The Atlantic
How McKinsey Destroyed the Middle Class - The Atlantic

The rise of management consulting firms like McKinsey played a pivotal role in disempowering the American middle class by promoting corporate restructuring that concentrated power and wealth in the hands of elite managers while stripping middle managers and workers of their decision-making roles, job security, and opportunities for career advancement.

Key topics:

  • Management consulting's role in reshaping corporate America
  • The decline of the middle class and the rise of corporate elitism
  • McKinsey's influence on corporate restructuring and inequality
  • The shift from lifetime employment to precarious jobs
  • The erosion of corporate social responsibility
  • The role of management consulting in perpetuating economic inequality
what consequences has the rise of management consulting had for the organization of American business and the lives of American workers? The answers to these questions put management consultants at the epicenter of economic inequality and the destruction of the American middle class.
Managers do not produce goods or deliver services. Instead, they plan what goods and services a company will provide, and they coordinate the production workers who make the output. Because complex goods and services require much planning and coordination, management (even though it is only indirectly productive) adds a great deal of value. And managers as a class capture much of this value as pay. This makes the question of who gets to be a manager extremely consequential.
In the middle of the last century, management saturated American corporations. Every worker, from the CEO down to production personnel, served partly as a manager, participating in planning and coordination along an unbroken continuum in which each job closely resembled its nearest neighbor.
Even production workers became, on account of lifetime employment and workplace training, functionally the lowest-level managers. They were charged with planning and coordinating the development of their own skills to serve the long-run interests of their employers.
At McDonald’s, Ed Rensi worked his way up from flipping burgers in the 1960s to become CEO. More broadly, a 1952 report by Fortune magazine found that two-thirds of senior executives had more than 20 years’ service at their current companies.
Top executives enjoyed commensurately less control and captured lower incomes. This democratic approach to management compressed the distribution of income and status. In fact, a mid-century study of General Motors published in the Harvard Business Review—completed, in a portent of what was to come, by McKinsey’s Arch Patton—found that from 1939 to 1950, hourly workers’ wages rose roughly three times faster than elite executives’ pay. The management function’s wide diffusion throughout the workforce substantially built the mid-century middle class.
The earliest consultants were engineers who advised factory owners on measuring and improving efficiency at the complex factories required for industrial production. The then-leading firm, Booz Allen, did not achieve annual revenues of $2 million until after the Second World War. McKinsey, which didn’t hire its first Harvard M.B.A. until 1953, retained a diffident and traditional ethos
A new ideal of shareholder primacy, powerfully championed by Milton Friedman in a 1970 New York Times Magazine article entitled “The Social Responsibility of Business is to Increase its Profits,” gave the newly ambitious management consultants a guiding purpose. According to this ideal, in language eventually adopted by the Business Roundtable, “the paramount duty of management and of boards of directors is to the corporation’s stockholders.” During the 1970s, and accelerating into the ’80s and ’90s, the upgraded management consultants pursued this duty by expressly and relentlessly taking aim at the middle managers who had dominated mid-century firms, and whose wages weighed down the bottom line.
Management consultants thus implemented and rationalized a transformation in the American corporation. Companies that had long affirmed express “no layoff” policies now took aim at what the corporate raider Carl Icahn, writing in the The New York Times in the late 1980s, called “corporate bureaucracies” run by “incompetent” and “inbred” middle managers. They downsized in response not to particular business problems but rather to a new managerial ethos and methods; they downsized when profitable as well as when struggling, and during booms as well as busts.
Downsizing was indeed wrenching. When IBM abandoned lifetime employment in the 1990s, local officials asked gun-shop owners around its headquarters to close their stores while employees absorbed the shock.
In some cases, downsized employees have been hired back as subcontractors, with no long-term claim on the companies and no role in running them. When IBM laid off masses of workers in the 1990s, for example, it hired back one in five as consultants. Other corporations were built from scratch on a subcontracting model. The clothing brand United Colors of Benetton has only 1,500 employees but uses 25,000 workers through subcontractors.
Shift from lifetime employment to reliance on outsourced labor; decline in unions
The shift from permanent to precarious jobs continues apace. Buttigieg’s work at McKinsey included an engagement for Blue Cross Blue Shield of Michigan, during a period when it considered cutting up to 1,000 jobs (or 10 percent of its workforce). And the gig economy is just a high-tech generalization of the sub-contractor model. Uber is a more extreme Benetton; it deprives drivers of any role in planning and coordination, and it has literally no corporate hierarchy through which drivers can rise up to join management.
In effect, management consulting is a tool that allows corporations to replace lifetime employees with short-term, part-time, and even subcontracted workers, hired under ever more tightly controlled arrangements, who sell particular skills and even specified outputs, and who manage nothing at all.
the managerial control stripped from middle managers and production workers has been concentrated in a narrow cadre of executives who monopolize planning and coordination. Mid-century, democratic management empowered ordinary workers and disempowered elite executives, so that a bad CEO could do little to harm a company and a good one little to help it.
Whereas at mid-century a typical large-company CEO made 20 times a production worker’s income, today’s CEOs make nearly 300 times as much. In a recent year, the five highest-paid employees of the S&P 1500 (7,500 elite executives overall), obtained income equal to about 10 percent of the total profits of the entire S&P 1500.
as Kiechel put it dryly, “we are not all in this together; some pigs are smarter than other pigs and deserve more money.” Consultants seek, in this way, to legitimate both the job cuts and the explosion of elite pay. Properly understood, the corporate reorganizations were, then, not merely technocratic but ideological.
corporate reorganizations have deprived companies of an internal supply of managerial workers. When restructurings eradicated workplace training and purged the middle rungs of the corporate ladder, they also forced companies to look beyond their walls for managerial talent—to elite colleges, business schools, and (of course) to management-consulting firms. That is to say: The administrative techniques that management consultants invented created a huge demand for precisely the services that the consultants supply.
Consulting, like law school, is an all-purpose status giver—“low in risk and high in reward,” according to the Harvard Crimson. McKinsey also hopes that its meritocratic excellence will legitimate its activities in the eyes of the broader world. Management consulting, Kiechel observed, acquired its power and authority not from “silver-haired industry experience but rather from the brilliance of its ideas and the obvious candlepower of the people explaining them, even if those people were twenty-eight years old.”
A deeper objection to Buttigieg’s association with McKinsey concerns not whom the firm represents but the central role the consulting revolution has played in fueling the enormous economic inequalities that now threaten to turn the United States into a caste society.
Meritocrats like Buttigieg changed not just corporate strategies but also corporate values.
GM may aspire to build good cars; IBM, to make typewriters, computers, and other business machines; and AT&T, to improve communications. Executives who rose up through these companies, on the mid-century model, were embedded in their firms and embraced these values, so that they might even have come to view profits as a salutary side effect of running their businesses well.
When management consulting untethered executives from particular industries or firms and tied them instead to management in general, it also led them to embrace the one thing common to all corporations: making money for shareholders. Executives raised on the new, untethered model of management aim exclusively and directly at profit: their education, their career arc, and their professional role conspire to isolate them from other workers and train them single-mindedly on the bottom line.
American democracy, the left believes, cannot be rejuvenated by persuading elites to deploy their excessive power somehow more benevolently. Instead, it requires breaking the stranglehold that elites have on our economics and politics, and reempowering everyone else.
·archive.is·
How McKinsey Destroyed the Middle Class - The Atlantic
Don’t Give Advice, Be Useful
Don’t Give Advice, Be Useful
on being a good consultant and advisor
resist the urge to add immediate value. Instead we have to hold space for a more vulnerable, honest and open relationship with our client - to allow them to open up more fully and to work on things that are useful, even if not in scope.
While giving advice can help you be seen as knowledgeable, it doesn’t necessarily build trust.
“You should…” It’s a simple sounding phrase but it gets you in trouble more often than not. It’s problematic for two reasons: it assumes a control of client resources and it’s too prescriptive in form
We typically don’t have a complete view of everything that the company is working on, we don’t have a detailed understanding of how long things actually take or the full range of dependencies required for them.
Example: working with a client where I wanted to re-design a landing page on their site to improve it. Unfortunately I was under-estimating the number of people who need to be involved since the landing pages were still owned by the product team and are technically part of the same codebase as the full tech product. So a “small” change required detailed security scrutiny and QA before going live. Making “simple” changes was not in fact simple at all here.
Example: working with the NYTimes cooking team I suggested that they should re-tag their content. This kind of “you should…” recommendation seemed straightforward but neglected the political considerations - the team had just spent 6-figures on re-tagging all their recipes - so to ask for further budget to re-do a task they had just done would lose them face internally. A “straightforward” change that actually carried a bunch of political baggage.
Some other types of complexity that you might be under-estimating with regards resource allocation: Regulation/compliance complexity - which either prevents you even doing your recommendation or makes it slower. Technical complexity - while something might be technically easy, doing it with the client’s existing technology might be hard. Data complexity - a simple seeming request on the surface (make a landing page for every neighborhood) might actually depend on a robust, maintained data set that doesn’t yet exist. Maintenance complexity - even if the initial request to create something or do something is not resource intensive, it might come with an implicit agreement to continue to maintain it - expanding the resources allocated. Production complexity - where what you’re proposing isn’t that expensive or resource intensive to do, but the client (for whatever reason) has a higher quality threshold, making the recommendation more expensive/slower/harder than you anticipated. Narrative complexity - where what you’re recommending seems reasonable but either the company has tried it before, or a competitor has tried it before or there’s a general sense that “this doesn’t work”. Which can make your recommendation extremely hard to actually get done.
When we say “You should…” we’re essentially offering a problem diagnosis AND a solution at the same time. The consequence of this is that we’re essentially asking the client to accept or reject both together.
most of your work would be more effective at actually changing clients if you stopped to clearly separate the diagnosis from the solution.
if you’re asking “You should…” to the client, stop and examine if you’ve properly defined the situation and provided evidence for the problem, to help the client deeply internalize the problem and win over the necessary stakeholders before you propose any kind of solution.
A good mental exercise to ensure you’re doing the work here is to ask yourself: what happens if the client takes no action? What is the consequence of the current trajectory, or the null case of no investment?
By showing what’s possible, clients are able to feel more invested in designing the solution with you, rather than just being told what to do.
clients deeply appreciate you clearly separating out expert opinion and judgment from evidence-based analysis.
A good process for the advisor to follow is: Give them their options Give them an education about their options (including enough discussion for them to consider each option in depth) Give them a recommendation Let them choose
Taking a collaborative stance with your client is powerful. There are many aspects of consulting that are almost combative by nature - like pointing out problems the client has (that the client was complicit in creating!).
I find in my own work that senior executives are often blocked by some inability to see what’s actually going on - and that telling them is useless! Instead you need to help them see it for themselves.
Because of their distance from the day to day work, senior executives are especially prone to replacing some version of reality with a compressed narrative. And when this compressed narrative is wrong in some key way you need to return to first principles to show them (not tell them!).
Your sense of “what’s going on” with a client is intermediated by your point of contact and it turns out that your client is an unreliable narrator.
When a client comes to you asking for a “content strategy” or support “hiring a VP marketing” it all seems so straightforward, rational and well defined. But as you unpack the layers of the onion you begin to realize why it’s been so hard for the client to help themselves. And that’s when the emotional and political complexity of the problem starts to come into view.
if the work is done effectively, it requires that the consultant be both involved enough in the dynamics so as to experience their impact and detached enough so as to analyze what is transpiring. These demands make imperative the use of oneself as tool.
always work on the next most useful thing. This mantra helps remind me that consulting isn’t about being right, it’s about being useful.
I delivered what I think is good quality work with a deeply researched and evidence-based 66-page strategy for producing content and…. Nothing happened? They were happy enough with the work product but it didn’t lead to any material change in their strategy or an ongoing consulting relationship. In hindsight the key mistake here was not asking myself enough what the next most useful thing was. I think if I’d been more honest about what would add value and show momentum for the client it would have been either a) condensed one or two slide summary of the content opportunity for their fundraising deck and/or b) supporting their VP marketing recruitment effort.
Either you’re telling the client “draw some circles” and the client is frustrated the advice is too basic and high level. Or you’re telling the client to “draw the rest of the fucking owl” and are ignoring the detailed reality of the situation and the limitations of teams, resources and capabilities.
Or worse, the client asked you for help drawing owls but what they’re really doing is painting a woodland scene…
Think about this image next time a client comes to you for help drawing owls - your first response shouldn’t be “Oh, that’s easy, first you draw some circles”, it should be “Show me how your owls look today. What do you think is holding you back from drawing better owls? And why is drawing owls important to you right now?”
Remember - it’s about adopting a collaborative, trusted stance with clients. And that might require resisting your initial urge to give advice. Instead you need to listen to the full emotional and political situation and then work with the client to re-examine reality in new and surprising ways. Always work on the next most useful thing. And that doesn’t always involve doing what the client asked for.
·tomcritchlow.com·
Don’t Give Advice, Be Useful