Comments on: McKinsey’s corrupted culture http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: cheap fifa 15 coins http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-52725 Fri, 26 Sep 2014 00:55:26 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-52725 tou kayac set up this car owner becausr that to get oprating technique xp certainly not several can i receive vga motorist to get lg electronics xnote for eye-port xp You should provided me personally vga new driver fof the lg xnot rd400 succeed xp in my email username my very own digital video disc range of motion will be proven while ejectable harddrive what exactly unwell complete? could you assist me to Hey there coming from Carolina! I am uninterested to be able to passing away in the office so I made a decision to look at your internet site in the new iphone 4 through lunch break. I love advantage an individual provide right here and also aren’t hold out to adopt a deeper look once i get home. Now i’m surprised at exactly how quick your website packed in the cell phone.. I am not just utilizing WIFI, just simply 3-G.. Anyways, fantastic blog site!

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By: EllieK http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-34552 Thu, 29 Dec 2011 08:21:11 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-34552 First, FrancineMcKenna is most definitely correct, regarding the concentration of available audit firms, and the consequences both good and bad.

More recently, jwu217’s comments are consistent with my impressions. I worked as a consultant, not quite a “management” consultant, rather, as an engineering consultant for several years, after earning a specialized degree. The era of management consultancy seems to have passed, other than for the big firms like McKinsey, who were the first in the field to begin with.

My recollection of my consulting work was of producing very specifically designed models for our client, under terms of strict confidentiality and non-compete agreements. The models could not be easily adapted for other companies in the same industry anyway. I recall that the group of us, as consultants, were kept sequestered in our own work area, with strictly enforced security protocols. Our access to online data was limited to need-to-know, and the same was true for access to client work areas and interactions. It was rather dreary, difficult work, and once our engagement was completed, I did wonder how well the regular staff were able to maintain our deliverables (production software).

This was utterly different from my later experience in finance, often investment bankers and corporate counsel. I worked with the same people on many deals, with broad access to all sorts of potentially valuable information. But that didn’t mean that fraud and abuse was rampant. The small upside gain of acting unethically wasn’t even worth considering, when balanced the certainty of a good job, done honestly.

Additional research would have been a good idea for the journalist who wrote this post.

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By: jwu1217 http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-33986 Tue, 13 Dec 2011 14:52:44 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-33986 hmm, i have worked for one of the top consultancies, and while i do think the model is limited and may have peaked in its usefulness, the gapper article and your post seem to be pretty poorly informed about the industry you are pontificating about.

Firms do recycle solution recommendations/”best practices” for different clients, but it’s more driven by intellectual lazyness/ lack of imagination on the part of the particular consultant (if he was doing his job he would develop something ad hoc – assuming the problem faced isn’t completely generic) than blatantly sharing any secret sauce gleaned at a competitor (firms aren’t stupid btw, they don’t show consultants the passcode to the family safe…)

As for confidential info itself, consultants would show sometimes benchmarking data (more or less thinly disguised or averaged so as not to blatantly disclose confidential information) to clients and I guess clients to a certain extent hire consultants because they are expected to have a broad view of the industry and are vectors of trends/gossip, but it is really a very small portion of both the real and perceived value add of a consultant. Any company that wants info on a competitor can just hire away an employee of the opposition, at a cost a fraction of what a Mckinsey team costs for a week, and get the full download, and of course they do it all the time.

Never in a million years would a consultant reveal to a mere client tradeable and current information on a competitor – first of all teams are firewalled so he is very unlikely to speak to both sides at the same time (unlike investment bankers who tend to be a lot more promiscuous), and second there is so little upside/ so much downside it’s just not worth it. Now, do some individuals trade on the information for personal account or pass info to friends (as Gupta did)? i would bet so. Just like lots of corporate execs do. Just like apparently lots of congress reps/senators do. Just like journalists no doubt do. Throw the first stone, or propose a solution that actually works, or shut up.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-24736 Sat, 12 Mar 2011 14:44:01 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-24736 AdamJ23, I stand corrected.

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By: AdamJ23 http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-24713 Fri, 11 Mar 2011 17:49:54 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-24713 Danny- Your understanding is wrong- every case the SEC brings is a civil case (or quasi-criminal if you like). Criminal cases are only brought the DOJ, not the SEC.
And the likely reason Gupta is the first to use this provision(if he truly is the first- which I’m far from certain of) was to gain a procedural advantage- who wouldn’t want an edge when they’re up against a multi-million dollar defense team?

My understanding is that in Federal Court there’s plenty of room for gamesmanship through filing discovery requests and motions- something that would likely happen when you have a defense team eager to justify their fees. But I can’t see how the venue decision has anything to do with having a weak case- it looks like they’ve caught him pretty much caught him red-handed.

Also, its not like any old McKinsey associate was caught- didn’t this guy run the company for 9 years?

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-24697 Fri, 11 Mar 2011 09:48:17 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-24697 AdamJ23, maybe i am… Again in the UK a civil case is tried on balance of probabilities. A criminal case requires guilt beyond reasonable doubt. My understanding is that the SEC decided to go for a civil case in a court with lower evidentiary standards solely in this guy’s case.

Not a lawyer, let alone a US one.

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By: fpalha http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-24695 Fri, 11 Mar 2011 07:54:24 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-24695 I must say, I’m appalled to see that Reuters lets this kind of “journalism” to be published. You didn’t even bother to investigate or hear the part you are accusing!

As a McKinsey alum, I never saw anything of the sorts of what you accuse the Firm of doing happen. On the contrary, McKinsey maintains a very strict code of confidentiality that stops consultants from working for competitors or sharing confidential client information outside group of consultants that have been authorized by the client to receive that information. All information held by individual consultants is destroyed at the end of the engagement.

Rajat Gupta’s actions DO NOT reflect the common practice or the culture in McKinsey. The actions of a single consultant or a very small group of them are no indication of the very high ethical standards the firm abides to.

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By: marcnyc http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-24694 Fri, 11 Mar 2011 07:02:12 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-24694 @pearljamfan: We’ve all seen how well “self-governing” cultures have worked out in other situations.

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By: AdamJ23 http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-24678 Thu, 10 Mar 2011 23:49:08 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-24678 Danny Black- you’re confusing evidentiary standards for introducing evidence with burden of proof. Evidentiary standards has to do with how evidence is introduced at Court and burden of proof is how certain the factfinder is of the defendant’s guilt. SEC cases, whether before federal judge or magistrate, must be proven by a preponderance of the evidence.

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By: AdamJ23 http://blogs.reuters.com/felix-salmon/2011/03/09/mckinseys-corrupted-culture/comment-page-1/#comment-24677 Thu, 10 Mar 2011 23:49:05 +0000 http://blogs.reuters.com/felix-salmon/?p=7569#comment-24677 Danny Black- you’re confusing evidentiary standards for introducing evidence with burden of proof. Evidentiary standards has to do with how evidence is introduced at Court and burden of proof is how certain the factfinder is of the defendant’s guilt. SEC cases, whether before federal judge or magistrate, must be proven by a preponderance of the evidence.

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