McKinsey & Company has survived for a century not by always being right, but by turning its “brand halo” and “knowledge methodologies” into a self-reinforcing system. Founded in 1926, the world has seen monumental changes over the past 100 years. Several waves of industrial shifts have caused many companies to disappear, yet McKinsey remains. They possess the ability to turn new problems into their next wave of consulting business without clinging to old methods. For a long time, they have convinced many corporations that McKinsey can deliver exceptional value. Whether a board of directors needs an external authority to push through layoffs and restructuring, or they need company data visualized into charts for executive decision-making, these are the factors that make clients believe McKinsey can solve their problems and are willing to pay for it. Gradually, this has made McKinsey synonymous with “management.”
Why They Succeed
McKinsey’s success is entirely inseparable from its brand influence. By consistently recruiting from top-tier institutions like Harvard Business School, they have forged an elite brand halo. Coupled with a powerful, mutually supportive alumni network, it becomes very easy to secure collaborative opportunities with other companies, which in turn further elevates the McKinsey brand. Rather than saying McKinsey is always successful, it is more accurate to say you rarely see them fail. This is due to a long-standing unspoken agreement with clients: “take no credit, take no blame.” The glory of success remains with the client company itself, and naturally, any failure cannot be squarely pinned on McKinsey. It’s like a renowned surgeon who has performed thousands of successful surgeries but will only be remembered for the one that failed. That is brand-risk management.
Management Methodologies Brought to the World
Most people’s natural thought process is to explain what happened first before deducing a conclusion, making the “conclusion first” approach highly counterintuitive. Stating your main argument at the very beginning of a presentation or article, placing supporting points in the middle, and leaving the detailed explanations for later is the core of the Pyramid Principle, introduced by McKinsey consultant Barbara Minto. Its central premise is that the human brain prefers to grasp the overarching framework first before diving into the supporting details, emphasizing the practicality of leading with the conclusion.
Facing the AI Impact
Just as they have with every challenge over the past century, McKinsey isn’t fighting AI using traditional methods. Not only do they help clients implement AI, but they also deploy numerous AI Agents internally. Even though traditional consulting operations have taken a hit, they courageously transform and face new trends head-on. While AI might be able to provide clients with excellent reference advice, I believe McKinsey’s brand and its long-accumulated proprietary data form a moat that is currently irreplaceable. Some of their business may be replaced by AI, but riding the wave and reinventing themselves are exactly what this company has excelled at for the past 100 years.