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Here I have tried to make a comparison of BCG & McKinsey compiled from various sources... Last updated on 13th November, added a new list of clients from Wikipedia Hope it is helpful to all BCG & McKinsey Aspirants...
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Competitive Strategy Punya Trivedi PGDM Executive – 2012-13 K.J.SIMSR, Mumbai
Agenda
• Layers & Players• Segmentation• Family Tree• Global Consulting Industry• How are other players doing things differently then the comparison
companies• Global footprint, Sectors supported, Clients• Approach to the market• What makes them unique• SWOT• McKinsey was Blamed• Game Changer
Layers & Players
Segmentation
Source: Insead Consulting Club Book 2011
Family Tree
Source: Insead Consulting Club Book 2011
Market Size
How players are differentiating?
• Specialization – Information technology consulting, human resource consulting, virtual management consulting
• Local/National/International
• Premium Product/Service – McK charges as high as 25% premium over BCG
• Fixed & Variable Pay “There is more contingency and variable pay now”
Global Footprint
BCG•78 offices in 43 countries•Africa has 2 offices•No presence in Russia•US, Europe & Middle East •A pioneer in Asian Consulting with more than 50% business coming from this region.
McKinsey•102 offices in more than 50 countries•Africa has 5 offices•No presence in Russia•US, Europe & Middle East
Practice Areas (Functional)
BCG McKinsey
Industries Served
BCG McKinsey
Clients Served
BCG-BSNL (2009)
-Wal*mart (Consumerist August 22, 2013)
-Pemex (CNBC 16th August, 2013)
-Bank of Baroda
•“Our clients include many of the world’s most ambitious organizations. Many of them rank among the world’s 500 largest companies, but we also advise midsized businesses, nonprofit organizations, and government agencies.”
McKinsey- Serbia hires McK as a consultant to its finance minister (Reuters 13th August, 2013)
-Infosys (Mint 19th August, 2013)
-Bank of Cyprus (Financial mirror 19th August, 2013)
-World Bank – (Devex-15-Aug-2013)
•“Our clients include the majority of the 100 largest industrial corporations in the world.”
Source: Based on various press releases
Clients ServedBCG-Google
-IBM
-Aetna
-Pfizer
-American Airlines
-Ford Motor Company
-Tata Group
-Harvard School of Public Health
-Russian Ministry of Energy
-Government of Canada
-United States Agency for International Development
Source: Wikipedia
McKinsey-AT&T
-BBC
-NBA
-General Electric
-Johnson & Johnson
-Siemens
-Home Depot
-Bank of England
-Oxford University
-Mitsubishi
-Royal Dutch Shell
-City of Chicago
-Governments of United Kingdom, Mexico & Taiwan
Approach Process
• "We don't sell, they come to us“ – Most common answer
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• A very deliberate process (e.g., here are X companies that are not currently clients, but that are a priority for us to land - we will develop a plan to be introduced to key stakeholders and pitch Y services)
• A much more organic process (introductions / referrals from past clients at the same or different companies, or selling additional work extending from a current project) - anecdotally, this is the most common way for projects to get sold
• A client sends out a Request For Proposal (firms then submit proposals based on the requirements of the RFP, and the client holds a 'bake-off' for the firms vying for the project)
by a Bain Consultant
Source: http://www.quora.com/What-are-sales-processes-like-at-top-tier-management-consulting-firms-like-McKinsey-BCG-Bain-etc
What makes them unique
BCG-Comes out with a thought provocative monthly Mag – BCG Perspectives-Contributed concepts like Experience Curve, BCG Matrix-Reputation/culture: Very academic, innovative; relatively more family oriented-In a nutshell BCG has far more flexibility on functioning modes
McKinsey-Famous quarterly magazine “McKinsey Quarterly” with high quality research-Spends highest on information collation and research-Strongest alumni network of more than 26000-Given credit for outsourcing boom in India-Reputation/culture: Gold standard, elite-If you look for "military" process then go for McKinsey-There is definitely a McKinsey way to do things
Compiled from various sources
BCG SWOT
Source: Capitaline
McKinsey SWOT
Source: Capitaline
McKinsey was Blamed• Advocating side pockets and off balance sheet accounting to Enron, it became known
as “the firm that built Enron” (Guardian, BusinessWeek)
• General Electric lost over $1 billion after following McKinsey’s advice in 2007 — just before the financial crisis hit. (The Ledger)
• Advising AT&T (Bell Labs invented cellphones) that there wasn’t much future to mobile phones (WaPo)
• Swissair went into bankruptcy after implementing a McKinsey strategy (BusinessWeek)
• British railway company Railtrack was advised to “reduce spending on infrastructure” — leading to a number of fatal accidents, and a subsequent collapse of Railtrack. (Property Week, the Independent)
Game Changer
“Consultants today cannot just deliver a slideshow and pocket fat fees. Even the elite three now make most of their revenue from implementing ideas, from finding ways to improve clients’ internal processes and from other tasks not traditionally considered “Strategy consulting”
The Economist
Thank you!Source: ET Apr 2, 2013