♪ ♪
[CHEERS AND APPLAUSE]
>> John: WELCOME, WELCOME,
WELCOME TO "LAST WEEK TONIGHT!"
I'M JOHN OLIVER.
THANKS SO MUCH FOR JOINING US.
IT'S BEEN A BUSY WEEK.
SIDNEY POWELL PLED GUILTY IN THE
2020 ELECTION INTERFERENCE CASE
IN GEORGIA, AND JOE BIDEN FLEW
TO ISRAEL TO OFFER HIS SUPPORT
AMID THE ONGOING HOSTAGE CRISIS.
IN GAZA, CONDITIONS ARE
HORRENDOUS, FOLLOWING BRUTAL
AIRSTRIKES, AND A BLOCKADE OF
FOOD, FUEL AND WATER, WHICH SOME
COMMENTATORS ARE JUST WAY TOO
COMFORTABLE WITH.
JUST LISTEN TO THIS EXCHANGE
BETWEEN A RETIRED SENIOR
MILITARY OFFICIAL AND AN ANCHOR
ON CNN.
>> I THINK WHAT THEY NEED TO DO
IS ENCIRCLE IT, THEY NEED TO
CONTINUE TO APPLY THE PRESSURE
OF THE BRIGADE, OF THIS BLOCKADE
THAT THEY'VE ESTABLISHED.
THE PEOPLE ARE GOING TO SUFFER,
BUT THEY'RE GOING TO COME UP ON
THE NET AND SAY, "LOOK, GET US
OUT OF HERE."
>> BUT DOES THAT MEAN -- YOU SAY
SAY -- DOES THAT MEAN STARVE THE
PALESTINIAN PEOPLE?
CONTINUE TO, BECAUSE THEY WILL
BE SO HUNGRY, AND WILL BE SO
DESPERATE FOR WATER, AND
MEDICINE, THAT THEN THEY WILL
GIVE UP HAMAS?
>> IT SOUNDS CALLOUS, BUT I
MEAN, THIS IS A WAR.
>> John: WHAT?!
IT IS A WAR.
YOU'RE DESCRIBING A WAR CRIME.
ONE THING DOES NOT JUSTIFY THE
OTHER.
JUST A THOUGHT FOR THAT ANCHOR,
WHO PROBABLY DIDN'T GET UP THAT
MORNING THINKING HE'D HAVE TO
GENUINELY EXPLAIN "YOU CAN'T
STARVE PEOPLE" TO A FORMER US
MILITARY OFFICIAL.
BUT, WE'RE GOING TO FOCUS ON
WASHINGTON THIS WEEK, WHERE
REPUBLICANS STILL HAVEN'T
MANAGED TO ELECT A NEW SPEAKER.
JIM JORDAN WENT THROUGH THREE
VOTES, ENJOYABLY LOSING SLIGHTLY
MORE EACH TIME.
AND AT ONE POINT, WAS
PHOTOGRAPHED COMING OUT OF A
CLOSED-DOOR MEETING WITH A
HANDWRITTEN NOTE READING, "WHAT
IS THE REAL REASON?"
WHICH LOOKS LESS LIKE A BID TO
BE SPEAKER AND MORE LIKE AN
EARLY DRAFT OF A SUICIDE NOTE.
THIS IS A HUMILIATING SITUATION
FOR REPUBLICANS, ALTHOUGH ONE
MEMBER DID HIS BEST TO SPIN THE
CHAOS AS A POSITIVE.
>> OUR DEMOCRATIC COLLEAGUES
WILL NOT WORK WITH US ON A
SINGLE THING TO SECURE THE
BORDER, NOT ONE THING-
>> YOU'RE THE ONES WHO CAN'T GET
BEHIND A CANDIDATE HERE.
>> WE ARE LAYING THIS ALL OUT IN
PUBLIC VIEW, AND THE AMERICAN
PEOPLE CAN SEE IT, IT IS THE
SAUSAGE GETTING MADE, IT IS THE
WORST SYSTEM EXCEPT FOR ALL THE
OTHERS.
>> YOU THINK THIS LOOKS GOOD?
>> John: NO, IT DEFINITELY
DOESN'T LOOK GOOD.
DO NOT CLAIM THAT YOU'RE "LAYING
THIS MESS OUT IN PUBLIC TO BE
TRANSPARENT ABOUT HOW THE
SAUSAGE IS MADE."
IT'S GETTING LAID OUT BECAUSE
YOU'RE INCAPABLE OF MAKING A
SAUSAGE AT ALL.
WHEN PEOPLE GO TO THE GROCERY
STORE, THEY EXPECT OSCAR MEYER
WEINERS, NOT OSCAR MEYER "A PIG
ANUS AND OTHER ASSORTED ANIMAL
PARTS."
AND TO BE FAIR, REPUBLICANS
AREN'T ALONE IN DEALING WITH
SOME PUBLIC EMBARRASSMENT.
DEMOCRATIC NEW JERSEY SENATOR
BOB MENENDEZ IS FACING FEDERAL
CHARGES FOR ALLEGEDLY ACCEPTING
BRIBES TO HELP, AMONG OTHERS,
THE EGYPTIAN GOVERNMENT, IN
FORMS INCLUDING GOLD BARS AND
STACKS OF CASH.
AND, THE STORY JUST KEEPS
DEVELOPING.
>> BOB MENENDEZ IS FACING NEW
CHARGES, ACCUSING THE NEW JERSEY
DEMOCRAT OF PLOTTING WITH HIS
WIFE AND AN ASSOCIATE TO MAKE
THE SENATOR AN AGENT OF EGYPT,
WHILE HE WAS CHAIRMAN OF THE
FOREIGN RELATIONS COMMITTEE.
THE NEW INDICTMENT SHOWING
MENENDEZ AND HIS WIFE HOSTING
ONE EGYPTIAN OFFICIAL IN HIS
SENATE OFFICE AND DINING WITH
ANOTHER AT A WASHINGTON, D.C.
STEAKHOUSE.
AT THAT DINNER, NADINE MENENDEZ
ALLEGEDLY ASKING, "WHAT ELSE CAN
THE LOVE OF MY LIFE DO FOR YOU?"
>> John: I DON'T LIKE THAT AT
ALL.
THAT SOUNDS LESS LIKE A REQUEST
FOR BRIBES AND MORE LIKE A
COUPLE IN AN OPEN RELATIONSHIP,
COMING ON A LITTLE TOO STRONG TO
YOU AT A BAR.
"WHAT ELSE CAN THE LOVE OF MY
LIFE DO FOR YOU THIS EVENING?"
ABSOLUTELY NOTHING!
LEAVE ME ALONE.
AND, THE WEIRD DETAILS DON'T
STOP THERE.
>> FEDERAL PROSECUTORS SAY
SENATOR MENENDEZ LIFTED A BLOCK
ON U.S. MILITARY AID TO EGYPT,
TEXTING HIS WIFE, "TELL WILL I
AM GOING TO SIGN OFF THIS SALE
TO EGYPT TODAY, 10,000 ROUNDS
TANK AMMUNITION."
>> John: OH THAT SOUNDS FINE,
JUST SOME NORMAL COUPLE STUFF,
TEXTING ABOUT THOUSANDS OF
ROUNDS OF TANK AMMUNITION.
ACCORDING TO THE INDICTMENT,
THAT TEXT EVENTUALLY GOT
FORWARDED TO EGYPTIAN OFFICIALS,
ONE OF WHOM REPLIED SIMPLY WITH
A "THUMBS UP" EMOJI.
AND, COME ON.
YOU'RE CONFIRMING THE RECEIPT OF
TANK AMMUNITION WITH A THUMBS
UP?
HAVE SOME PANACHE!
WHERES THE DOLLAR HANDSHAKE OR
THE MONEYBAG BOMB CHAMPAGNE SHHH
OR THE FLYING MONEY AND THE
TRUCK, MAKING THE OTHER GUY GO
"WHAT IS THE TRUCK FOR?"
ONLY TO GET THE RESPONSE, "THEY
DON'T HAVE TANKS, THAT WAS THE
BIGGEST TRUCK," GETTING THE
REPLY, "OKAY, GOT IT, COOL."
AND THEN, AND ONLY THEN, IS THE
THUMBS-UP EMOJI APPROPRIATE.
NOW, MENENDEZ - ALONG WITH
EVERYONE ELSE CHARGED IN THIS
CASE - HAS DENIED WRONGDOING,
AND SAID THIS WEEK "NOTHING HAS
CHANGED IN THIS INDICTMENT
EXCEPT THE NEW CHARGE."
THOUGH, THAT NEW CHARGE IS A
PRETTY GIGANTIC ONE.
AND IT'S NOT A GREAT SIGN THAT
POLITICO RAN THE ACTUAL
HEADLINE, "IS IT LEGAL FOR A
SENATOR TO WORK AS A FOREIGN
AGENT?
THE ANSWER WON'T SURPRISE YOU."
AND IF YOU'RE NOTICING THAT
MENENDEZ'S WIFE, NADINE IS
FEATURING A LOT IN THIS STORY,
IT'S BECAUSE SHE'S ACTUALLY BEEN
CHARGED, TOO.
ACCORDING TO THE INDICTMENT,
SOME OF THE ITEMS OF VALUE THAT
MENENDEZ RECEIVED WERE FOR HER
BENEFIT.
IT MENTIONS THAT AT ONE POINT,
SHE TOTALED HER CAR -- SOMETHING
THAT HAPPENED, INCIDENTALLY,
WHEN SHE HIT AND KILLED A MAN IN
2018 -- WHICH I DON'T EVEN HAVE
TIME TO GET INTO.
GOOGLE THAT YOURSELVES.
AND, THE INDICTMENT ALLEGES THAT
THIS BUSINESSMAN HELPED HER PAY
FOR THIS NEW $60,000 MERCEDES IN
EXCHANGE FOR FAVORS FROM
MENENDEZ.
AND WHEN THE CAR TURNED UP,
NADINE SEEMED VERY HAPPY.
>> PROSECUTORS SAY THAT AFTER
NADINE MENENDEZ GOT THE NEW CAR,
SHE TEXTED THE SENATOR, QUOTE,
"CONGRATULATIONS MON AMOUR DE LA
VIE, WE ARE THE PROUD OWNERS OF
A 2019 MERCEDES," ALONG WITH A
HEART EMOJI.
>> John: WOW, SAY WHAT YOU WANT
ABOUT NADINE MENENDEZ -- AND
THAT PEDESTRIAN SHE RAN OVER
CERTAINLY CAN'T -- BUT SHE LOVES
THAT CAR.
AND, BY THE WAY, NOT A GREAT
LOOK FOR MERCEDES THERE.
NOW, ARE THE MENEDEZES THE WORST
POLITICAL FIGURES THAT MERCEDES,
AS A BRAND, HAS EVER BEEN
ASSOCIATED WITH?
NO, THAT WOULD PROBABLY BE THIS
GUY.
ALTHOUGH, TO BE FAIR, IT'S NOT
LIKE MERCEDES IS THE CAR OF
CHOICE FOR NAZIS ANYMORE.
THESE DAYS, THAT'S REALLY MORE
OF A TESLA THING.
THE MENENDEZES HAVE CLEARLY
GOTTEN THEMSELVES INTO AN
IMPRESSIVE AMOUNT OF SHIT FOR A
COUPLE THAT APPARENTLY ONLY MET
FIVE YEARS AGO.
AND IN SOME PRETTY STRANGE
CIRCUMSTANCES.
>> THE COUPLE TOLD THE NEW YORK
TIMES THEY MET IN DECEMBER 2018
AT AN IHOP IN UNION CITY, NEW
JERSEY.
SHE TOLD THE NEW YORK TIMES SHE
THOUGHT MENENDEZ WAS "VERY
INTELLIGENT," AND "VERY, VERY
HOT."
>> John: OKAY, I'LL BE HONEST --
IF SOMEONE TOLD ME THEY FOUND
THIS MAN TO BE "VERY, VERY HOT,"
I THINK MY ONLY LOGICAL RESPONSE
WOULD BE, "YOU MEAN LIKE, TO THE
TOUCH?
IS HE OKAY?"
BECAUSE, HE LOOKS LIKE A KEEBLER
ELF BECAME A TAX ACCOUNTANT.
HE LOOKS LIKE WHAT WOULD HAPPEN
IF YOU COMBINED THE OLD MAN AND
THE LITTLE BOY FROM "UP" INTO A
SINGLE PERSON.
AND, LET'S NOT SKIP OVER THEIR
MEETING PLACE -- AN IHOP IN
UNION CITY, NEW JERSEY.
THAT'S NOT A MEET-CUTE.
THAT'S A
MEET-CLINICALLY-DEPRESSED.
"AN IHOP IN NEW JERSEY" IS NOT
WHERE YOU EXPECT A SENATOR TO
MEET HIS WIFE.
IT'S WHERE YOU EXPECT A CUSTOMER
TO MEET "THEIR OWN PERSONAL ROCK
BOTTOM."
AND I'D SAY "MEETING AT A UNION
CITY IHOP" IS THE MOST JERSEY
THING ABOUT THIS COUPLE, BUT IT
ISN'T.
NOT ONLY DOES NADINE HAVE
MULTIPLE PICTURES WITH CAST
MEMBERS OF THE REAL HOUSEWIVES
OF NEW JERSEY AND MOB WIVES, BUT
PERHAPS THE PHOTO OF HER THAT
SCREAMS "NEW JERSEY" THE MOST IS
THIS ONE.
LOOK AT THESE JEANS.
THEY ARE IN ITALY IN THIS PHOTO.
ITALY.
HOME OF PRADA, GUCCI, AND
ARMANI, YET SHE LOOKS LIKE SHE'S
ON THE DISNEY CHANNEL RED CARPET
IN 2005.
THIS IS A CHAOTIC RELATIONSHIP.
THEY GOT ENGAGED ON A TRIP TO
INDIA, AND THERE'S ACTUALLY
VIDEO OF THE PROPOSAL, WHERE
YOU'LL SEE MENENDEZ SERENADING
NADINE WITH A NUMBER FROM "THE
GREATEST SHOWMAN" BEFORE POPPING
THE QUESTION.
>> ♪ TOWERS OF GOLD ARE STILL
TOO LITTLE ♪
♪ THESE HANDS COULD HOLD THE
WORLD ♪
♪ AND IT WILL NEVER BE ENOUGH ♪
♪ NEVER BE ENOUGH FOR ME ♪
>> OH MY GOD!
>> WOW.
>> John: YEAH, WOW!
IT DOESN'T LOOK GREAT NOW TO
HEAR THE WORLD'S OLDEST THEATER
KID SING ABOUT HOW "TOWERS OF
GOLD" WILL NEVER BE ENOUGH FOR
HIM, GIVEN THE MULTIPLE GOLD
BARS THAT WERE FOUND IN HIS
HOUSE.
I DON'T CARE HOW MUCH YOU LIKE A
SONG, IF IT SOUNDS THAT MUCH
LIKE A CONFESSION, MAYBE DON'T
SING IT IN PUBLIC.
IT'S ONE OF THE MANY REASONS THE
NEW SWEENEY TODD REVIVAL ON
BROADWAY STARS JOSH GROBAN AND
NOT O.J. SIMPSON.
BECAUSE REGARDLESS OF HOW GOOD
JUICE WOULD BE IN THE ROLE, THE
KNIFE CRIMES HAPPENING ON STAGE
WOULDN'T BE THE ONES I'D BE
THINKING ABOUT.
NOW, MENENDEZ HAS STEPPED DOWN
AS CHAIR OF THE SENATE FOREIGN
RELATIONS COMMITTEE, BUT IS
FACING INCREASING CALLS FROM
WITHIN HIS OWN PARTY TO STEP
DOWN AS SENATOR ALTOGETHER -- A
MOVE THAT APPARENTLY 70% OF NEW
JERSEYANS SUPPORT.
WHICH IS STRIKING.
IT'S HARD TO THINK OF SOMEONE
THAT NEW JERSEYANS HATE MORE
THAN MENENDEZ.
NOT IMPOSSIBLE.
JUST HARD.
THE POINT IS: BOB MENENDEZ IS
CLEARLY IN A LOT OF TROUBLE.
AND WHILE I DON'T KNOW WHERE HIS
CASE IS GOING LEGALLY, IF YOU
WERE TO ASK ME IF HE SHOULD
RESIGN FROM CONGRESS, I AND THE
PEOPLE OF NEW JERSEY WOULD GIVE
YOU A VERY STRONG THUMBS UP
EMOJI.
AND NOW, THIS.
>> Announcer: AND NOW, SOME
THINGS THAT TURN STU VARNEY ON.
>> GIVE ME SOME EXAMPLE OR
DEMONSTRATE HOW AUGMENTED
REALITY WORKS.
WHAT I'M GOING TO SEE, HOW I'M
GOING TO USE IT.
TURN ME ON.
WHAT WAS THAT NEURALINK?
I WANT TO FOCUS ON THAT BECAUSE
IT TURNS ME ON.
WHAT TURNS ME ON IS GOOGLE AND
-- VIDEO.
THE IDEA OF THAT YARD SALE
REALLY TURNS ME ON.
>> ARE YOU A FAN?
>> IT TURNS ME ON.
>> HEY GIRL.
>> SPACE TURNS ME ON FOR
WHATEVER REASON.
IT'S ANOTHER SPACE STORY, AND
IT'S FOR YOU.
>> LOOK AT THAT.
>> THIS TURNS ME ON.
THE REHABILITATION OF PEOPLE
WITH SERIOUS SPINAL CORD AND
SKELETAL INJURIES, THAT'S WHAT
REALLY TURNS ME ON.
WHAT I'M INTERESTED IN IS CHINA
STOCKS, SPECIFICALLY BAIDU WITH
A STOCK BUYBACK PLAN.
THAT ALWAYS TURNS ME ON, RIGHT?
>> IT DOES.
>> DOES IT?
[LAUGHTER]
DIDN'T NEED TO KNOW THAT.
[
♪ ♪
>> John: MOVING ON.
OUR MAIN STORY TONIGHT CONCERNS
BUSINESS.
A WORD THAT SOMEHOW DESCRIBES
THE FRONT PART OF A MULLET, THE
SECOND-NICEST SEATS ON AN
AIRPLANE AND THE SINGLE SADDEST
ROOM IN ANY HOTEL.
SPECIFICALLY, WE'RE GOING TO
TALK ABOUT THE BUSINESSES THAT
MAKE OTHER BUSINESS'S BUSINESS,
THEIR BUSINESS: MANAGEMENT
CONSULTANTS.
THERE'S THREE BIG FIRMS, AND
TONIGHT, WE'RE GOING TO FOCUS ON
THE OLDEST AND LARGEST ONE:
McKINSEY & COMPANY.
IT'S BEEN AROUND FOR NEARLY A
CENTURY, ADVISING BOTH BIG
COMPANIES AND GOVERNMENT
AGENCIES ON HOW TO FIX THEIR
MOST COMPLEX AND URGENT
PROBLEMS.
>> McKINSEY WAS FOUNDED IN 1926
BY JAMES O McKINSEY.
HE WAS A PROFESSOR AT THE
UNIVERSITY OF CHICAGO AND AN
EXPERT IN MANAGEMENT ACCOUNTING.
BY THE 1950S, THE FIRM WAS
ASSISTING THE WHITE HOUSE WITH
STAFFING ORGANIZATION, WHICH,
ACCORDING TO THE COMPANY, WOULD
LEAD TO THE CREATION OF THE
CHIEF OF STAFF ROLE.
IN 1970, McKINSEY HELPED CREATE
THE BARCODE.
YES, THAT BAR CODE.
>> John: THAT'S TRUE!
McKINSEY DID HELP INVENT THE BAR
CODE.
AND I KNOW THAT'S DISAPPOINTING.
MAYBE YOU THOUGHT IT WAS
INVENTED BY A GROCER IN THE 60S
WHO DREAMT OF A WAY FOR
COMPUTERS TO TASTE FRUIT.
MAYBE, YOU THOUGHT THE BEEPS
WERE JUST HOW THE PROGRAM SAYS
"YUM."
BUT, I'M AFRAID YOU'RE IMAGINING
A BETTER WORLD THAN THE ONE WE
LIVE IN.
BUT, IT'S NOT JUST BAR-CODE
INNOVATION.
FIRMS LIKE McKINSEY SELL
THEMSELVES AS CAN-DO EXPERTS WHO
CAN COME IN, PROVIDE AN OUTSIDE
PERSPECTIVE, AND FIX WHATEVER
AILS A COMPANY -- WHETHER IT'S
RE-ENGINEERING AN ORGANIZATIONAL
CHART, WORKING ON DIGITAL
STRATEGIES, OR DECIDING WHETHER
TO SELL OFF PART OF THEIR
BUSINESS -- YOU NAME IT, THEY'LL
ADVISE YOU ON WHAT TO DO.
AND, McKINSEY'S WORKED WITH
EVERYONE, FROM COMPANIES LIKE
COCA COLA, BEST BUY, AND AT&T TO
GOVERNMENT AGENCIES, LIKE THE
DEPARTMENT OF DEFENSE AND ICE.
McKINSEY IS MASSIVE, AND
UBIQUITOUS -- IT HAS OFFICES IN
AT LEAST 65 COUNTRIES, AND AN
ANNUAL REVENUE ESTIMATED AT $15
BILLION.
BUT, McKINSEY DOESN'T SEE ITSELF
AS JUST A BUNCH OF
POWERPOINT-SLINGING,
POWER-SUIT-WEARING
MICROMANAGERS.
AS YOU CAN TELL FROM THEIR
RECRUITMENT VIDEOS, THEY SEE
THEMSELVES AS OPERATING AS A
FORCE FOR GOOD IN THE WORLD.
>> OUR PURPOSE IS TO CREATE
POSITIVE ENDURING CHANGE IN THE
WORLD.
>> THE WORK YOU DO WITH McKINSEY
WILL MATTER.
>> WHAT WE ARE DOING ON A DAY TO
DAY BASIS IS REALLY IMPACTING
THE LIVES OF THOUSANDS OF
PEOPLE, SOMETIMES MORE.
>> WHAT'S REALLY GREAT ABOUT
McKINSEY IS IT PROVIDES YOU WITH
AN OPPORTUNITY TO WORK ON REALLY
HARD PROBLEMS THAT ARE ALSO
REALLY INTERESTING, AND ALSO
REALLY ACTUALLY MATTER
>> John: RIGHT.
McKINSEY CONSULTANTS ARE
ENCOURAGED TO SEE THEMSELVES AS
WORLD-CHANGERS.
AS A HUMBLE McKINSEY PARTNER
ONCE PUT IT, "THERE ARE ONLY
THREE GREAT INSTITUTIONS LEFT IN
THE WORLD: THE MARINES, THE
CATHOLIC CHURCH, AND McKINSEY."
WHICH IS A HELL OF A GROUP TO
PUT YOURSELF IN.
"LOOK -- THERE'S JUST THREE COOL
GUYS LEFT IN THE WORLD: HENRY
KISSINGER, KEVIN SPACEY, AND
ME."
AND THE TRUTH IS, McKINSEY'S
REPUTATION HAS TAKEN A BIT OF A
KNOCK IN RECENT YEARS.
IT'S FOUND ITSELF UNDER SCRUTINY
FOR EVERYTHING FROM EXACERBATING
INCOME INEQUALITY, TO HELPING
MARKET DANGEROUS PRODUCTS, TO
ENABLING AUTHORITARIAN REGIMES.
AND, FORMER EMPLOYEES HAVE
POINTED OUT THAT FOR ALL ITS
TALK OF MAKING THE WORLD A
BETTER PLACE, IT'S WORKED FOR
SOME OF THE PLANET'S BIGGEST
POLLUTERS, WHILE GETTING
HUNDREDS OF MILLIONS OF DOLLARS
IN RETURN.
IN FACT, ONE OF THOSE
DISILLUSIONED EMPLOYEES PAINTS A
PRETTY DAMNING PORTRAIT OF WHAT
THE COMPANY IS AT ITS CORE.
>> THEY SERVE A LOT OF CLIENTS
WITH REALLY HARMFUL EFFECTS.
THEY KNOW EXACTLY WHAT THE
REPERCUSSIONS ARE GOING TO BE
AND THEN THEY SAY "WE'RE GOING
TO DO IT ANYWAY."
AND, THAT TELLS YOU ALL YOU NEED
TO KNOW ABOUT THE FIRM.
>> John: RIGHT, THAT'S AN
INHERENTLY ALARMING THING TO
HEAR ABOUT A BUSINESS.
GENERALLY, YOU WANT COMPANIES TO
MITIGATE HARM, NOT ACTIVELY SEEK
IT OUT.
IT'S WHY LEGO HAS A CHOKING
HAZARD WARNING ON ITS PACKAGING,
INSTEAD OF ONE THAT SAYS, "NOW
WITH BLUE RASPBERRY FLAVOR!"
SO IF IT'S THAT INFLUENTIAL,
THAT UBIQUITOUS, AND IS BEHIND
SO MUCH HARM, TONIGHT, LET'S
TAKE A LOOK AT McKINSEY.
AND, IF THIS IS THE FIRST TIME
YOU'RE HEARING McKINSEY'S NAME
-- DON'T BE EMBARRASSED.
BECAUSE, FOR A COMPANY WITH SO
MUCH REACH, IT'S GONE OUT OF ITS
WAY TO TRY AND KEEP A LOW
PROFILE.
IT DOESN'T PUBLICIZE ITS CLIENT
LIST, AND EVEN ITS OFFICES CAN
BE HARD TO SPOT.
>> WE STOPPED BY McKINSEY'S
HEADQUARTERS AT 3 WORLD TRADE
CENTER IN LOWER MANHATTAN.
IT'S SUCH A POWERFUL COMPANY,
AND YET YOU WOULD NEVER KNOW
THEY WERE HERE.
THERE'S NOT A SINGLE McKINSEY
SIGN ANYWHERE.
WHY IS THAT?
>> THEY DON'T WANT ANYONE TO
KNOW ANYTHING ABOUT THEM.
THEY WANT EVERYTHING DONE IN
SECRET, AND IF THAT INCLUDES
WHERE THEY WORK, THEN SO BE IT.
>> John: THAT'S NOT INNATELY
SUSPICIOUS AT ALL!
YOU'VE BUILT YOURSELF AN
EXPENSIVE, GLASS-FRONTED
NAMELESS LAIR THAT'S COMPLETELY
INVISIBLE TO ANYONE, UNLESS THEY
SIMPLY TYPE McKINSEY INTO
"GOOGLE MAPS" OR HAPPENED TO
HEAR THAT JOURNALIST SAY "3
WORLD TRADE CENTER" WHILE SHE
LITERALLY SHOWED YOU THEIR
ADDRESS.
KUDOS.
THAT WAS A DICK MOVE AND I
APPRECIATE IT.
BUT, DISCRETION IS ONLY PART OF
McKINSEY'S BRAND.
THEY'VE ALSO CULTIVATED A
REPUTATION FOR HIRING THE BEST
AND BRIGHTEST, FRESH OUT OF
ELITE COLLEGES AND MBA PROGRAMS.
AND YOUNG, HIGH-ACHIEVING TYPES
OFTEN USE A STINT AT McKINSEY AS
A SPRINGBOARD TO BIGGER THINGS
-- FORMER EMPLOYEES INCLUDE PETE
BUTTIGIEG, SENATOR TOM COTTON,
FACEBOOK'S SHERYL SANDBURG, AND
GOOGLE'S CEO SUNDAR PICHAI.
AND, McKINSEY PICKS ITS
CONSULTANTS THROUGH A
NOTORIOUSLY RIGOROUS INTERVIEW
PROCESS, ASKING CANDIDATES
CHALLENGING, SLIGHTLY
UNCONVENTIONAL QUESTIONS.
>> ONE OF THE INTERVIEW
QUESTIONS I WAS ASKED IN MY
FINAL ROUNDS WAS, "HOW MANY PIGS
ARE IN CHINA?"
WHICH SOUNDS LIKE A VERY SILLY
QUESTION, BUT IT'S A REALLY GOOD
QUESTION TO TEST HOW YOU THINK
BECAUSE, IT'S NOT ONLY - THE
ANSWER DOESN'T MATTER.
IT'S, HOW CAN YOU STRUCTURE A
PROBLEM?
CAN YOU TAKE A VERY NEBULOUS
SITUATION AND PUT STRUCTURE
AROUND IT IN A WAY THAT MAKES
SENSE, AND THEN LOGICALLY DEDUCE
THINGS IN ORDER TO GET TO AN
ANSWER THAT'S MEANINGFUL.
>> John: SURE, THAT'S ONE WAY TO
DESCRIBE IT.
ANOTHER WAY MIGHT BE TO SAY THAT
THEY'RE JUST TRYING TO SEE HOW
GOOD YOU ARE AT BULLSHITTING
YOUR WAY TO A PLAUSIBLE-SOUNDING
ANSWER.
BECAUSE, IF A BUSINESS "REALLY"
NEEDS TO KNOW HOW MANY PIGS ARE
IN CHINA, THERE ARE WAYS TO FIND
THAT OUT.
LIKE CALL CHINESE PORK MAGNATE
QIN YINGLIN, OR JUST GOOGLE "HOW
MANY PIGS IN CHINA."
OR IF YOU'RE ON YOUR PHONE,
GOOGLE "HOWKANY OIGSNCHINA,"
BECAUSE THAT'S STILL ENOUGH FOR
IT TO GO ON.
WHAT DO I HAVE TO DO, DRAW IT A
MAP?
I'M IN A HURRY.
MY THUMBS ARE FAT AND I'VE GOT
PLACES TO BE.
BUT, ONCE THEY'RE HIRED,
McKINSEY CONSULTANTS WORK
INSANELY LONG HOURS, WHILE BEING
SCHOOLED IN "THE McKINSEY WAY"
OF DOING THINGS -- SOMETHING THE
FIRM ITSELF CAN BE PRETTY
INSUFFERABLE ABOUT.
A PARTNER ONCE SAID, "WE DON'T
LEARN FROM CLIENTS.
THEIR STANDARDS AREN'T HIGH
ENOUGH.
WE LEARN FROM OTHER McKINSEY
PARTNERS" -- A SENTENCE SO SMUG
THAT, EVEN IF YOU JUST READ IT,
YOU'D HAVE AUTOMATICALLY HEARD
MY ACCENT IN YOUR HEAD.
BECAUSE THAT'S NOT JUST SMUG:
THAT IS BRITISH EMPIRE SMUG.
AND THE THING IS, THAT LEVEL OF
SWAGGER MIGHT MAKE SOME SENSE IF
McKINSEY'S ADVICE WAS
CONSISTENTLY NOVEL AND
BRILLIANT.
BUT, IT'S HAD SOME BIG MISSES --
FAMOUSLY, IN THE EARLY 1980S,
ITS CLIENT AT&T ASKED McKINSEY
TO ESTIMATE HOW MANY CELL PHONES
WOULD BE IN USE IN THE WORLD BY
THE TURN OF THE CENTURY, AND
McKINSEY CONCLUDED THAT THE
TOTAL MARKET WOULD ONLY BE ABOUT
900,000 PHONES, TOTAL, WHICH
PERSUADED AT&T TO PULL OUT OF
THE MARKET.
AND, TO BE FAIR, McKINSEY WERE
ONLY OFF BY ABOUT $739 MILLION,
AND, TO BE FAIR, McKINSEY WERE
ONLY OFF BY ABOUT 739 MILLION,
OR 82,000%.
BUT, EVEN WHEN THEY'RE
TROUBLESHOOTING EXISTING
PROBLEMS, THEIR "BESPOKE"
SOLUTIONS CAN BE BLINDINGLY
OBVIOUS.
WATCH AS ONE McKINSEYITE BRAGS
IN A PROMOTIONAL VIDEO ABOUT THE
FIRM'S ABILITY TO COME UP WITH
UNIQUE SOLUTIONS.
>> WE WERE SERVING AN ENERGY
CLIENT, AND THEIR PROBLEM WAS
THAT THEY HAVE OFFSHORE DRILLING
RIGS, AND THEY HAD STACKS AND
STACKS OF PAPER INVOICES THAT
THEY WOULD FLY OUT TO THESE RIGS
IN THE MIDDLE OF THE GULF COAST
-- IN HURRICANE WEATHER -- TO
HAVE TO GET SOMEBODY TO SIGN OFF
AND THEN HELICOPTER BACK TO
HEADQUARTERS.
WE BROUGHT IN A TEAM THAT HAD
PARTNERS WHO WERE EXPERTS IN THE
ENERGY SECTOR, WE HAD PARTNERS
WHO WERE EXPERTS IN PROCUREMENT
AS A FUNCTION, AND THEY WERE
ABLE TO GET TOGETHER WITH OUR
DIGITAL TEAM, AND SAY "ACTUALLY,
WE DON'T KNOW IF SIGNATURES ARE
REALLY REQUIRED FOR THIS."
>> John: YEAH, NO SHIT!
I'M NOT SURE IT SPEAKS WELL OF
YOU THAT YOU NEEDED THE DIGITAL
TEAM AND EXPERTS IN THE ENERGY
SECTOR AND "PROCUREMENT AS A
FUNCTION," WHATEVER THE FUCK
THAT MEANS, TO GET TO THE
CONCLUSION "WHY NOT SEND AN
EMAIL INSTEAD OF A FUCKING
HELICOPTER?"
AND THAT'S NOT A ONE-OFF -- OVER
THE YEARS, THERE HAVE REPEATEDLY
BEEN GRUMBLES THAT McKINSEY
OVERSELLS ITS BRILLIANCE.
IN THE WORDS OF ONE FORTUNE
STORY, WHILE "SOME OF ITS WORK
CAN BE HIGHLY SOPHISTICATED,
MUCH OF THE TIME THE FIRM MERELY
REORGANIZES SALES FORCES OR
DESIGNS BY-THE-NUMBERS
DOWNSIZING TO REDUCE OVERHEAD."
AND, THOSE ARE JUST OBVIOUS,
FIRST-THOUGHT IDEAS.
ESSENTIALLY, McKINSEY IS A FIRM
THAT PROJECTS A HUGE AMOUNT OF
CONFIDENCE TO SELL A FREQUENTLY
UNREMARKABLE PRODUCT AT SKY-HIGH
PRICES, MAKING THEM TRULY THE
SALT BAE OF COMPANIES.
"YOU'VE HAD SALT BEFORE, BUT
HAVE YOU HAD IT FROM A DOUCHE?"
AND, LET'S TALK FOR A MINUTE
ABOUT DOWNSIZING.
BECAUSE, THERE IS A LONG HISTORY
OF COMPANIES BRINGING IN
CONSULTING FIRMS LIKE McKINSEY,
AND VERY SOON AFTER,
AGGRESSIVELY CUTTING COSTS.
THIS GETS DRESSED UP WITH FANCY
TERMS LIKE "FINDING
EFFICIENCIES" AND
"ORGANIZATIONAL STREAMLINING,"
BUT WHAT THAT OFTEN AMOUNTS TO
IS MASS LAYOFFS.
AND LOOK: LAYOFFS ARE SOMETIMES
NECESSARY, BUT THEY'RE ALWAYS
PAINFUL -- AND MUCH MORE PAINFUL
THAN SOME MID-20S IVY LEAGUER
WHO FANCIES HIMSELF A BUSINESS
GENIUS MIGHT REALIZE.
24 YEARS AGO, McKINSEY ALLOWED A
DOCUMENTARY CREW RARE ACCESS TO
FILM A TRAINING SESSION FOR
YOUNG CONSULTANTS, GOING THROUGH
AN EXERCISE WHERE THEY
ROLE-PLAYED ADVISING A REAL-LIFE
CLIENT.
HERE THEY ARE, JOKING ABOUT HOW
THEY'D BREAK THE NEWS THAT
LAYOFFS WERE GOING TO BE
NECESSARY.
>> WE'VE GOT A VERY SIMPLE
STRATEGY.
JUST -
♪BOM, BOM, BOM, BOM BOM♪
♪ BOM, BOM, BOM, BOM♪
♪ HIT THE ROAD, JACK♪
♪ AND DON'T YOU COME BACK♪
♪ NO MORE, NO MORE, NO MORE, NO
MORE♪
♪ HIT THE ROAD, JACK♪
♪ AND DON'T YOU COME BACK NO
MORE, NO MORE♪
THAT'S NOT OUR COMMUNICATIONS
STRATEGY.
>> John: COOL.
NOW, I'M NOT A VIOLENT PERSON,
BUT IF ALL THOSE DICKHEADS
EXPLODED, I WOULD ABSOLUTELY
SPIN AROUND SINGING "IT'S
RAINING MEN."
BUT, THAT'S EMBLEMATIC OF A
MAJOR ROLE CONSULTANTS LIKE
McKINSEY PLAY: ESSENTIALLY,
ALLOWING EXECUTIVES TO SAY, "I
KNOW JOB CUTS ARE BAD NEWS, BUT
IT'S WHAT McKINSEY TOLD US TO
DO.
AS ONE BOOK ON THE COMPANY PUT
IT, "THEY ARE, WITHOUT QUESTION,
THE GO-TO CONSULTANTS FOR
MANGERS SEEKING JUSTIFICATION
FOR SAVAGE COST CUTTING, AS WELL
AS A CONVENIENT SCAPEGOAT ON
WHOM TO BLAME IT."
THOUGH, THERE'S ONE AREA WHERE
McKINSEY HAS HISTORICALLY
ADVISED THE EXACT OPPOSITE OF
COST-CUTTING, AND THAT'S
EXECUTIVE PAY.
STARTING IN 1950, A CONSULTANT
OF THEIRS NAMED ARCH PATTON
STARTED ADVISING CORPORATE
LEADERS THEY WERE UNDERPAID --
WRITING BOOKS LIKE, "MEN, MONEY
AND MOTIVATION: EXECUTIVE
COMPENSATION AS AN INSTRUMENT OF
LEADERSHIP."
HIS ADVICE WAS SO WILDLY POPULAR
THAT, FOR A TIME, PATTON
PERSONALLY ACCOUNTED FOR ALMOST
10% OF THE FIRM'S BILLINGS, AND
LATER CAME TO BE SEEN AS A MAJOR
CONTRIBUTOR TO SKYROCKETING
EXECUTIVE PAY.
IN FACT, WHEN HE WAS ASKED IN
THE '80S ABOUT HOW HE FELT ABOUT
THE EFFECT OF HIS WORK, HIS
REPLY WAS SIMPLE: "GUILTY."
AND WHILE IT'S HARD TO GAUGE
TONE FROM THAT, I'M GOING TO
HOPE IT WAS A SOBER, REFLECTIVE
"GUILTY," AND NOT -- AS SEEMS
MORE LIKELY -- A NAUGHTY,
MISCHIEVOUS "GUIL-TY!"
LIKE YOU'D USE TO RESPOND TO
"WHO SPIKED THE PUNCH?"
SO, TO RECAP: McKINSEY'S ADVICE
CAN BE EXPENSIVE BUT OBVIOUS,
ITS PREDICTIONS CAN BE DEEPLY
FLAWED, AND IT'S ARGUABLY HELPED
SUPERCHARGE ECONOMIC INEQUALITY
IN THIS COUNTRY.
ALL OF WHICH IS PRETTY STRIKING,
COMING FROM A COMPANY WHOSE
LEADER YOU'VE ALREADY SEEN SUM
UP ITS FUNDAMENTAL MISSION LIKE
THIS.
>> OUR PURPOSE IS TO CREATE
POSITIVE, ENDURING CHANGE IN THE
WORLD.
>> John: YEAH, IS IT, THOUGH?
BECAUSE, LET'S TALK ABOUT THAT.
A QUICK LOOK AT McKINSEY'S
CLIENT LIST SHOWS A BUNCH OF
COMPANIES GOING OUT OF THEIR WAY
TO DO THE EXACT OPPOSITE OF
"POSITIVE ENDURING CHANGE."
BECAUSE, IT'S NOT JUST THOSE OIL
AND GAS COMPANIES I MENTIONED
EARLIER.
THE FIRM ALSO BEGAN COUNSELING
THE TOBACCO INDUSTRY IN 1956,
WELL AFTER WE KNEW SMOKING
CAUSED CANCER.
YOU MIGHT BE THINKING, "WELL,
C'MON, IT WAS THE '50s, LOTS OF
PEOPLE WERE OKAY WITH SMOKING
BACK THEN."
BUT, YOU SHOULD KNOW, McKINSEY
ONLY "STOPPED" WORKING WITH
TOBACCO COMPANIES IN 2021.
WHICH IS, AND THIS IS TRUE, TOO
LATE.
THAT WOULD BE LIKE FINDING OUT
SUBWAY DROPPED JARED'S CONTRACT
"TODAY."
WAIT: HE WAS STILL IN
COMMERCIALS?
FROM PRISON?
HOW COULD ANYONE THINK THAT WAS
OKAY?
AND, IF YOU THINK THAT WAS
DAMAGING, McKINSEY ALSO WORKED
WITH PURDUE PHARMA.
THEY ACTUALLY MADE NEARLY $84
MILLION IN FEES FROM PURDUE, FOR
ADVICE ON HOW TO, QUOTE,
"TURBOCHARGE" SALES OF
OXYCONTIN.
IN FACT, LISTEN TO THE AG OF
MASSACHUSETTS EXPLAIN JUST HOW
INTIMATELY McKINSEY WAS INVOLVED
IN PURDUE'S SALES PROCESS.
>> McKINSEY CONSULTANTS ACTUALLY
RODE ALONG WITH, WENT WITH
PURDUE SALES REPS TO DOCTOR'S
OFFICES HERE IN MASSACHUSETTS TO
CRITIQUE THEM ON HOW EFFECTIVE
THEY WERE AT SELLING OXYCONTIN.
>> John: IT'S TRUE, THEY DID
RIDE-ALONGS!
AND HONESTLY, I DIDN'T THINK I
COULD HAVE ANY SYMPATHY FOR
PURDUE SALES REPS, UNTIL I
LEARNED THAT THEY WERE TRAPPED
IN A CAR WITH A McKINSEY
CONSULTANT FOR HOURS.
"YEAH, YOU MENTIONED YOU WENT TO
HARVARD.
CAN WE PLEASE JUST BE QUIET AND
GO SELL SOME POISON?"
BUT, IT'S NOT JUST PRIVATE
COMPANIES -- REMEMBER,
McKINSEY'S FREQUENTLY HIRED BY
GOVERNMENT AGENCIES, TOO, WHERE,
AGAIN, THEIR ADVICE HAS NOT
BROUGHT UNIVERSALLY POSITIVE
CHANGE.
FOR INSTANCE, IN 2014, NEW YORK
CITY BROUGHT McKINSEY IN TO
FIGURE OUT HOW TO REDUCE
VIOLENCE AT RIKERS -- A PROJECT
WHOSE COST BALLOONED TO $27
MILLION.
PEOPLE ASKED QUESTIONS AT THE
TIME ABOUT WHETHER THAT WAS A
GOOD USE OF MONEY, BUT THE HEAD
OF THE CITY'S CORRECTIONS BACK
THEN INSISTED McKINSEY WAS WORTH
EVERY PENNY.
>> IF WE MADE ANY PROGRESS, IT
WAS BECAUSE OF McKINSEY'S HELP
IN AREAS THAT WE NEEDED HELP IN.
>> John: WOW, THAT'S HIGH
PRAISE!
TO CLAIM THAT McKINSEY WAS THE
"SOLE" REASON FOR ANY PROGRESS
MADE AT RIKERS WOULD BE A PRETTY
IMPRESSIVE COMPLIMENT, IF YOU
DIDN'T KNOW ANYTHING ABOUT THE
STATE OF RIKERS.
SO, WHAT IMAGINATIVE STRATEGIES
DID McKINSEY TRY TO IMPLEMENT?
OH, I DUNNO, JUST FUN THINGS
LIKE EXPANDING THE USE OF
TASERS, SHOTGUNS, AND AGGRESSIVE
DOGS.
IT'S SOME "VERY" OUTSIDE THE BOX
THINKING, FOR PEOPLE LITERALLY
TRAPPED INSIDE BOXES.
BUT, ITS BIG PROJECT WAS AN
ANTI-VIOLENCE PROGRAM CALLED
"RESTART."
IT CLAIMED THAT VIOLENCE HAD
DROPPED MORE THAN 50 PERCENT IN
THE RESTART FACILITIES.
WHICH SOUNDS GREAT!
UNFORTUNATELY, IT TURNED OUT,
THAT NUMBER WAS BOGUS, BECAUSE
JAIL OFFICIALS AND McKINSEY
CONSULTANTS HAD REPORTEDLY
JOINTLY RIGGED THE RESTART
PROGRAM, BY STACKING THE UNITS
WITH INMATES THEY BELIEVED TO BE
UNLIKELY TO GET INTO FIGHTS OR
TO ATTACK STAFF IN THE FIRST
PLACE.
AND, WHILE McKINSEY, TO THIS
DAY, DEFENDS THAT PROGRAM AND
DENIES SKEWING THE RESULTS, IT'S
NOTABLE THAT WHEN PROPUBLICA
LATER CRUNCHED THE NUMBERS FOR
RIKERS OVERALL, THEY FOUND THAT,
JAILHOUSE VIOLENCE THERE HAD
ACTUALLY RISEN NEARLY 50% SINCE
McKINSEY BEGAN ITS ASSIGNMENT.
AND HONESTLY: YOU'VE KIND OF GOT
TO HAND IT TO THEM THERE.
NOT MANY FIRMS COULD GET PAID
$27 MILLION OF TAXPAYER MONEY TO
LEAVE RIKERS SOMEHOW WORSE.
AND, IT'S NOT JUST JAILS:
McKINSEY'S GOVERNMENT CLIENTS
ALSO INCLUDE REGULATORS.
WHICH CAN GET A LITTLE WEIRD,
WHEN YOU CONSIDER THAT McKINSEY
ALSO REPRESENTS CORPORATE
CLIENTS.
FOR INSTANCE: REMEMBER HOW IT
WORKED WITH PURDUE PHARMA?
WHILE IT WAS WORKING FOR THEM,
IT WAS ALSO WORKING WITH THE
FDA.
THAT SURE SEEMS LIKE A CLEAR
CONFLICT OF INTEREST.
AND, IT WAS ONE THAT EVEN MR.
"POSITIVE AND ENDURING CHANGE"
HERE FOUND A LITTLE HARD TO
EXPLAIN TO CONGRESS AFTER THE
FACT.
>> OKAY.
SO, LET ME ASK YOU, DID YOU
DISCLOSE TO THE FDA YOUR --
McKINSEY'S WORK AT THE SAME TIME
-- DID YOU DISCLOSE TO THE FDA
THAT McKINSEY WAS WORKING AT THE
SAME TIME IT WAS WORKING FOR THE
FDA, THAT IT WAS WORKING FOR
PURDUE?
DID YOU DISCLOSE THAT TO THE
FDA?
>> WE MADE CLEAR IN MULTIPLE
INSTANCES THAT THE INDIVIDUALS
INVOLVED HAD EXPERIENCE IN BOTH
PHARMACEUTICALS AND OPIOIDS.
>> RECLAIMING MY TIME.
MR. STERNFELS, THEY DIDN'T HAVE
EXPERIENCE.
THEY WERE THE IDENTICAL HUMANS
WORKING FOR BOTH AT THE SAME
TIME.
>> John: EXACTLY, AND THERE'S A
BIG DIFFERENCE BETWEEN HAVING
EXPERIENCE WORKING FOR BOTH, AND
ACTIVELY WORKING FOR BOTH AT THE
SAME TIME.
IT'S THE SAME DIFFERENCE BETWEEN
TELLING YOUR WIFE ABOUT YOUR
EX-GIRLFRIEND, AND TELLING YOUR
WIFE ABOUT YOUR CURRENT
GIRLFRIEND.
ONE IS DRAMATICALLY WORSE THAN
THE OTHER.
AND, KATIE PORTER WAS RIGHT --
THERE WERE MULTIPLE INSTANCES OF
McKINSEY CONSULTANTS WORKING FOR
BOTH PURDUE AND THE FDA AT THE
SAME TIME.
AT ONE POINT, FOUR CONSULTANTS
WORKING ON AN FDA CONTRACT TO
ENHANCE DRUG SAFETY WERE
SIMULTANEOUSLY WORKING FOR
PURDUE, ON PROJECTS DESIGNED TO
PERSUADE THE FDA OF THE SAFETY
OF PURDUE'S PRODUCTS.
ONE PROJECT EVEN HAD THEM
WRITING SCRIPTS FOR PURDUE TO
USE IN A MEETING WITH THE FDA,
ON THE SAFETY OF PEDIATRIC
OXYCONTIN.
PEDIATRIC OXY!
OXY FOR KIDS.
Y'KNOW, JUST LIKE IN THAT
EPISODE OF "DORA THE EXPLORER"
WHEN BACKPACK IS GETTING A BIT
TOO HEAVY AND BOOTS GIVES HER A
LITTLE SOMETHING TO TAKE THE
EDGE OFF.
NOW, McKINSEY CLAIMS THERE WAS
NO CONFLICT, AND THAT THE NATURE
OF THEIR WORK FOR FDA AND PURDUE
WAS DIFFERENT.
WHICH IS HARD TO TAKE,
CONSIDERING THEY SOLD THEMSELVES
TO PURDUE AT THE TIME, WITH THE
NOTION THAT THEY HAD SPECIAL
INSIGHTS INTO THE FDA.
THEY TOLD PURDUE IN 2014 THAT
THEY BROUGHT AN "UNEQUALED
CAPABILITY BASED ON WHO WE KNOW
AND WHAT WE KNOW," INCLUDING
"THE FDA, WHO WE HAVE SUPPORTED
FOR OVER FIVE YEARS."
SO, WHICH IS IT?
WAS THE WORK YOU DID FOR THE FDA
"TOTALLY DIFFERENT," OR DID IT
HELP YOU BRING AN "UNEQUALED
CAPABILITY" TO PURDUE?
IT CAN'T BE BOTH.
THIS ISN'T SCHRODINGER'S
CONTRACT.
YOU DON'T GET TO CLAIM IT'S BOTH
RELEVANT AND UNRELATED DEPENDING
ON WHO THE FUCK YOU'RE TALKING
TO.
AND AT THIS POINT, I COULD STOP.
TOBACCO, OPIOIDS, RIKERS.
THOSE ARE ALREADY SOME PRETTY
UNPLEASANT STAINS ON A COMPANY'S
RECORD.
BUT, HERE'S THE THING: ALL THE
EXAMPLES SO FAR ARE JUST FROM
THE US.
AND REMEMBER -- McKINSEY NOW HAS
OFFICES ALL OVER THE WORLD.
AND FROM THEM, THEY'VE COZIED UP
TO SOME TRULY TERRIBLE CLIENTS.
THEY'VE WORKED FOR A RUSSIAN
DEFENSE CONTRACTOR, AND ARE SO
DEEPLY ENTRENCHED IN THE
GOVERNMENT OF SAUDI ARABIA THAT
SAUDI ARABIA'S PLANNING MINISTRY
HAS BEEN DUBBED "THE MINISTRY OF
McKINSEY."
AND, IT'LL LOUDLY DEFEND ITS
WORK THERE, SAYING THAT IT FEELS
IT'S MAKING THE COUNTRY A BETTER
PLACE.
BUT, THAT FEAT OF MENTAL
GYMNASTICS GOT A LITTLE TRICKIER
AFTER JAMAL KHASHOGGI WAS
ASSASSINATED.
JUST A FEW MONTHS LATER,
McKINSEY'S HEAD AT THE TIME WAS
ON CNBC, TRYING TO DEFEND ITS
WORK IN THE COUNTRY, AND
REASSURING EVERYONE IT HAD A
STRICT MORAL CODE.
>> THE WORK THAT WE DO -- AND WE
THINK VERY HARD ABOUT THE WORK
WE DO -- NEEDS TO BE WORK THAT
DOES MAKE A POSITIVE DIFFERENCE.
>> SURE.
>> AND, THAT'S WHAT I'M --
-- MAKING SURE WE --
>> BUT JUST STRAIGHT UP AND
DOWN, DOING BUSINESS WITH A
MURDERER IS OKAY BY YOU?
>> NO, IT'S ABSOLUTELY NOT.
>> OKAY, AND YOU -- AND WHEN --
WHEN YOU FIND OUT THAT YOUR
CLIENT IS A MURDERER, YOU DO
WHAT?
>> YOU WALK.
>> John: OH, YOU WALK, DO YOU?
THAT SOUNDS GOOD!
EXCEPT HERE'S THE THING: THEY
DIDN'T WALK.
THEIR CLIENT KILLED AND
DISMEMBERED A JOURNALIST, AND
McKINSEY RESPONDED BY
PARTICIPATING IN A MAJOR SAUDI
INVESTMENT CONFERENCE THAT SAME
MONTH, EVEN AS OTHER COMPANIES
PULLED OUT.
SO UNLESS "YOU WALK" IS SHORT
FOR "YOU WALK TO THE FRONT OF
THE LINE AND PICK UP YOUR
LANYARD FOR ANOTHER FUN WEEKEND
AT THE JOURNALIST-CHOPPIN'
BUSINESS JAMBOREE," YOU ARE FULL
OF SHIT!
BUT WAIT -- IT GETS EVEN WORSE.
BECAUSE IT LATER EMERGED THAT IN
ONE OF McKINSEY'S REPORTS, IT
HIGHLIGHTED THREE PEOPLE WHO
"DROVE NEGATIVE CONVERSATION ON
TWITTER" ABOUT SAUDI GOVERNMENT
POLICIES.
THIS IS THAT SLIDE -- FEATURING
NAMES, PICTURES, CRITICISMS AND
FOLLOWER COUNTS.
AND SUBSEQUENTLY, SOME OF THOSE
PEOPLE WERE -- YOU'RE NOT GONNA
BELIEVE THIS -- TARGETED BY THE
SAUDI GOVERNMENT.
IN FACT, ONE OF THEIR PHONES WAS
HACKED, REVEALING COMMUNICATIONS
WITH, YOU GUESSED IT, JAMAL
KHASHOGGI.
AT THIS POINT, I HAVE TO TELL
YOU McKINSEY CONSISTS
"THERE IS NO EVIDENCE THE SLIDE
DECK WAS CONNECTED TO THE DEATH
OF JAMAL KHASHOGGI OR EXPOSED
DISSIDENTS."
AND, THAT IT WASN'T PREPARED FOR
THE SAUDI GOVERNMENT.
IN FACT, WHEN THIS STORY
INITIALLY CAME TO LIGHT, THEY
SAID THE REPORT'S INTENDED
PRIMARY AUDIENCE WAS "INTERNAL,"
AND THAT THEY WERE HORRIFIED BY
THE POSSIBILITY, HOWEVER REMOTE,
THAT IT COULD HAVE BEEN MISUSED
IN ANY WAY.
BUT, COME ON.
IT'S SAUDI ARABIA.
EVEN IF THAT REPORT DIDN'T FALL
INTO THEIR HANDS -- AND "PLEASE"
-- WHAT PART OF THE WAY SAUDI
ARABIA OPERATES MADE YOU THINK
THAT "A McKINSEY-CURATED LIST OF
SHIT-TALKING DISSIDENTS" WOULD
BE A GOOD THING TO PUT TOGETHER?
YOU'RE WORKING IN ONE OF THE
ROOTINEST, TOOTINEST, JOURNALIST
SHOOTINEST REGIMES IN THE MIDDLE
EAST, AND YOU FIGURED IT WAS
FINE TO DRAW UP A LIST LIKE
THIS, BECAUSE THE POTENTIAL FOR
MISUSE WAS "REMOTE?"
WHAT ARE YOU TALKING ABOUT?
THIS IS A GOVERNMENT LED BY
MOHAMMED BIN-SALMAN, A MAN WHO,
AND THIS IS TRUE, ONCE DETAINED
HIS OWN MOTHER.
DO YOU THINK IF MBS WERE TO
STUMBLE ACROSS A LIST OF HIS
HATERS, HE'D JUST SEND THEM A
BIG "NO HARD FEELINGS ABOUT ALL
THE DISSIDENT STUFF" EDIBLE
ARRANGEMENT?
THE FUCK IS WRONG WITH YOU?
AND FOR WHAT IT'S WORTH, A
FORMER McKINSEY CONSULTANT HAS
CALLED THAT WHOLE "INTERNAL
DOCUMENT" EXCUSE "UTTER
HORSESHIT."
AND LOOK: McKINSEY WILL CLAIM
THAT EVERYTHING I'VE MENTIONED
TONIGHT ARE ISOLATED CASES, NOT
REPRESENTATIVE OF THEIR WORK
OVERALL.
WHAT'S MORE, THEY'LL SAY THEY'VE
REVAMPED THEIR POLICIES ON
CLIENT SELECTION, AND THAT "IF A
CLIENT OR PROPOSED PROJECT FALLS
SHORT OF OUR STANDARDS, WE WILL
NOT DO THE WORK."
ALTHOUGH, THEY'RE STILL WORKING
IN SAUDI ARABIA, SO THOSE
STANDARDS SEEM, AT BEST, FUCKING
FLEXIBLE.
THEY ALSO WANT ME TO TELL YOU
THEY DO A LOT OF PROJECTS LIKE
HELPING CLIENTS DEPLOY VACCINES,
OR SUPPORTING REFUGEES AND
REBUILDING IN UKRAINE, WHICH IS
VERY NICE.
BUT, THINK OF IT LIKE THIS: HOW
MANY UPLIFTING McKINSEY PROJECTS
LIKE "MORE SNUGGLES AT THE PUPPY
FACTORY" OR "MAKE GRANDMA LIVE
FOREVER," WOULD YOU NEED TO HEAR
ABOUT TO EFFECTIVELY
COUNTERBALANCE "TURBOCHARGE THE
OPIOID EPIDEMIC," "HELP FUCK UP
RIKERS EVEN MORE," AND "MAKE A
SAUDI ARABIAN SNITCH LIST?"
AND LOOK, IT'S NOT JUST McKINSEY
WITH THESE ISSUES: THEIR MAIN
COMPETITORS HAVE HAD THEM TOO.
BCG WAS ALSO DEEP IN WITH THE
SAUDIS, AND BAIN WAS BANNED FROM
STATE CONTRACTS IN SOUTH AFRICA
FOR A DECADE, THANKS TO ITS ROLE
IN A MASSIVE CORRUPTION SCANDAL.
AND, I'M NOT EVEN SAYING THE
CONSULTING INDUSTRY SHOULD BE
ABOLISHED.
GETTING OUTSIDE FEEDBACK ON BEST
PRACTICES CAN MAKE A LOT OF
SENSE FOR AN ORGANIZATION.
WE CERTAINLY NEED TO PRESERVE A
CAREER PATH FOR HIGH-ACHIEVING
TYPE-A BULLSHITTERS WHO DON'T
WANT TO COMMIT TO LAW SCHOOL AND
WANT TO SPEND THEIR PRIME YEARS
FLYING BUSINESS CLASS TO DALLAS.
COMPANIES CAN FEEL FREE TO HIRE
AS MANY FRESH-FACED DORK
SOCIOPATHS AS THEY WANT TO TAKE
THE HEAT FOR WHATEVER LAYOFFS
AND-OR ATROCITIES THEY WERE
ALREADY LAUNCHING IN THE FIRST
PLACE.
IT'S A FREE COUNTRY, OR NOT,
DEPENDING ON WHERE THE McKINSEY
OFFICE IS.
BUT, IF THEIR WORK, AS THEY
CLAIM, REALLY DOES IMPACT THE
LIVES OF MILLIONS OF PEOPLE,
THEY SHOULDN'T GET TO BE
INVISIBLE AND THEY SHOULD EXPECT
MUCH MORE ACCOUNTABILITY FOR
THEIR MISTAKES.
AND, UNTIL SUCH TIME AS THAT
HAPPENS, THE VERY LEAST THEY CAN
DO IS BE A BIT MORE TRANSPARENT
WITH THEIR RECRUITING VIDEOS
GOING FORWARD.
♪ ♪
>> HI.
HERE AT MCKINSEY, WE ARE AN
ELITE GROUP OF STRATEGISTS,
THINKERS, INNOVATORS, GUYS NAMED
BRADEN, AND DELTA PLATINUM
SKYMILES REWARDS MEMBERS, HERE
TO DRIVE SUCCESS AT ANY BUSINESS
VENTURE.
WE ARE PROUD TO SAY MCKINSEY
ALUMS INCLUDE MANY OF THE MOST
POWERFUL PEOPLE ON EARTH.
AND ALSO, PETE BUTTIGIEG.
>> WE AT MCKINSEY GENUINELY
BELIEVE GREAT CONSULTANTS CAN
COME FROM ANYWHERE.
THAT'S WHY OUR WORKFORCE
FEATURES AN INCREDIBLY DIVERSE
ARRAY OF GRADUATES FROM ALL OVER
THE IVY LEAGUE, EVEN CORNELL.
>> SO, IF YOU ARE AN AMBITIOUS
COLLEGE SENIOR OR AN MBA
GRADUATE WHO NEEDS TO BE TOLD
"YOU'RE SPECIAL" OR YOU WILL
DIE, WE WOULD LIKE YOU TO
CONSIDER A CAREER AT MCKINSEY.
>> THE BEST PART OF MY HARVARD
EDUCATION WAS THE LOOK ON
PEOPLE'S FACES WHEN I SAID "I GO
TO HARVARD."
I'M REALLY PASSIONATE ABOUT
BELONGING IN GROUPS THAT OPPRESS
PEOPLE, AND SO TO BE ABLE TO
CONTINUE THAT AT MCKINSEY HAS
BEEN VERY FULFILLING.
>> ONE OF THE INTERVIEW
QUESTIONS I WAS ASKED IN MY
FINAL ROUND WAS "HOW MUCH WOOD
WOULD A WOODCHUCK CHUCK IF A
WOODCHUCK COULD CHUCK WOOD?"
SOUNDS LIKE A SILLY QUESTION.
IT'S A SMART WAY TO TEST YOUR
APPROACH TO PARTNERS AND HOW
MANY BILLABLE HOURS YOU CAN TALK
FOR.
IN MY CASE, A LOT.
>> HERE AT MCKINSEY, YOU'LL
HAVE THE OPPORTUNITY TO CHANGE
THE WORLD, BY SERVING A
SURPRISINGLY WIDE ARRAY OF
CLIENTS.
>> BUT, NOT JUST ANYONE.
FOR INSTANCE, WE PROUDLY DON'T
WORK FOR TOBACCO CLIENTS, AND
HAVEN'T SINCE THE START OF THIS
SENTENCE.
>> WE HAVE GOT CLIENTS WHO
APPEAL TO EVERY INTEREST: LOCAL
INTERESTS, FOREIGN INTERESTS,
AND EVEN CONFLICT OF INTERESTS.
>> I WORK FOR THE FDA AND
PURDUE PHARMA.
AT THE SAME TIME.
I CAN'T BELIEVE I WAS ALLOWED TO
DO THAT.
MY MOM DID SAY "SHOULDN'T THAT
BE ILLEGAL?"
THAT MADE ME REALLY WORRIED,
UNTIL I REMEMBERED SHE'S NOT A
CONSULTANT, OF COURSE SHE
WOULDN'T UNDERSTAND.
I WAS BASICALLY TALKING TO AN
APE.
>> WE HOLD OUR EMPLOYEES AND OUR
CLIENTS TO A HIGHER PERSONAL AND
ETHICAL STANDARD.
CORE MCKINSEY VALUES WILL
ALWAYS --
>> SORRY, YOU HAVE A PHONE CALL?
>> NOT NOW?
>> IT'S THE SAUDIS.
>> ACTUALLY, I DO HAVE TO TAKE
THIS.
I THINK IT MIGHT BE ABOUT -- THE
THING.
>> YOU'VE GOT BRADEN BEAT.
>> THE POINT IS, YOU WILL BE
USING YOUR BIG, SPECIAL, EARLY
'20S BRAIN UNENCUMBERED BY
PRACTICAL EXPERIENCE TO DEVELOP
BESPOKE TAILOR SOLUTIONS TO
ADDRESS COMPANIES' SPECIFIC
NEEDS.
>> WHAT WE ARE RECOMMENDING IS
FINDING SIGNIFICANT
EFFICIENCIES, BY LAYING OFF THE
PEOPLE AT THE BOTTOM OF THE
COMPANY AND PAYING MORE TO THE
PEOPLE AT THE TOP.
>> HEY, THAT'S ME!
THE MONEY SIGNS!
>> YES!
>> THAT'S ME AT THE TOP!
[LAUGHS]
>> LOOK: WE BELIEVE THERE ARE
THREE GREAT INSTITUTIONS LEFT IN
THE WORLD: THE MARINES, THE
CATHOLIC CHURCH, AND MCKINSEY.
>> THAT'S BECAUSE THE MARK OF
ANY GOOD INSTITUTION IS MATCHING
OUTFITS, EVASION OF
RESPONSIBILITY THROUGH
INSTITUTIONAL SECRECY, AND THE
MISPLACED BELIEF THAT YOU ARE
SAVING THE WORLD.
BECAUSE AT THE END OF THE DAY --
>> WE'RE MCKINSEY.
>> AND, WE ARE CAPABLE OF
ANYTHING.
>> AND CULPABLE FOR NOTHING.
[LAUGHS]
>> I LOVE THAT LINE.
>> I MEAN IT'S TRUE, THEY CAN'T
TOUCH US.
>> IT'S TRUE.
>> JOHN: THAT'S OUR SHOW,
THANKS SO MUCH FOR WATCHING.
WE'LL SEE YOU NEXT WEEK.
GOOD NIGHT.
[CHEERS AND APPLAUSE]
♪ ♪
>> JUST TRADITIONAL FIRING
SONGS.
OF COURSE, NSYNC.
THE VERB, FOR ANY GEN X PEOPLE
YOU MIGHT BE FIRING.
>> YOU WOULD HAVE TO TAKE THE
DIAMOND OUT OF THE WOODCHUCK'S
MOUTH, TIME THE VOLUME, SO YOU
COULD GET AN AVERAGE BITE,
PASSING SIZE, AND THEN YOU HAVE
TO MULTIPLY THAT WITH THE TOTAL
WOOD CONSUMPTION IN AMERICA,
WHICH THEY WOODCHUCK HAS MADE,
AND JUST OFF THE TOP OF MY HEAD,
ABOUT 3.4 BILLION VOLUMES
OF WOOD -- SO, THE FOREST AND
DEVASTATION, CLIMATE CHANGE.
I WOULD SAY A WOODCHUCK COULD
PROBABLY CHUCK ABOUT 2 BILLION
CUBITS OF WOOD PER YEAR.
>> WAIT, I'M SORRY, HE DID
ANOTHER ONE.
OH, MY GOD.
WHICH NEWSPAPER?