McKinsey chief plans second term after crises years

afr.com:

London | McKinsey chief Bob Sternfels has signalled he plans to run for a second term as managing partner as he rebuilds the consultancy after years of reputational crises and as the firm battles mounting economic and geopolitical challenges.

Mr Sternfels, 53, was elected in July 2021 after a turbulent few years when the firm was embroiled in a corruption scandal in South Africa, criticised for its role in turbocharging opioid sales and attacked for working for clients including Saudi Arabia.

McKinsey chief Bob Sternfels seeks to take the consultancy into its 100th year. Bloomberg

His predecessor, Kevin Sneader, was the first managing partner since the 1970s not to win a second three-year term after the turmoil called into question the company’s future and the idea of the “McKinsey mystique” that had backstopped the consultancy’s ability to charge a premium.

To ensure the longevity of the firm, which was founded in 1926, Mr Sternfels has sought to overhaul client relationships so they view McKinsey as a partner rather than just a service provider, pledged to hire from a more diverse talent pool and committed to being “one global firm”, bringing expertise from across the world to help clients wherever they operate.

“I think it’ll take us three years to land that and those aren’t things that you land, you know, in the next, in the next six months,” Mr Sternfels said in an interview when asked about the prospect of a second term.

The McKinsey chief, who seeks to take the consultancy into its 100th year, said “it’s up to the senior partners” to dictate his future. There are about 770, up from 650 in July 2021.

In February, McKinsey said it could cut as many as 2000 back-office staff this year as part of one of the largest