Hawley cracks down on McKinsey CCP ties

Women CEOs face higher churn rates? | Saudi grapples with consulting dependency

May 20, 2024

Exec Sum

Hawley cracks down on McKinsey’s CCP ties with new Senate bill
BCG partner with JPM, Microsoft, and Harvard’s D^3 to advance AI solutions
More layoffs at McKinsey, but signs from the trenches the market is improving

👀 What to expect: ~800 words / 4 min read

Thanks to Pratik, Eisa and Dominic for referring to BTO and welcome to the 167 new readers who’ve joined since our last issue. Invite your friends and get access to free resources using your unique code below:

Refer a friend

Industry News

US Senator Hawley cracking down on McKinsey’s CCP ties

A bill introduced by Senator Hawley named Time to Choose Act, passed the U.S. Senate Committee on Homeland Security and Governmental Affairs (HSGAC) on May 15th.

The bill prohibits the Department of Defense and other federal agencies from contracting firms like McKinsey who are also doing business with the Chinese government or its affiliates. The bill would also impose penalties on firms that intentionally hide or misrepresent contracts with certain Chinese and other foreign entities. Hawley’s belief is that McKinsey, as an American multinational, should be dedicated to advancing American interests. In February of this year, McKinsey stated their client work in China is overwhelmingly for U.S., multinational and Chinese private sector entities. However, the firm has previously acknowledged commercial connections to the CCP. Read more.

A powerful, slightly older, well-dressed female businesswoman standing on a cracking glass floor. She exudes confidence, wearing a stylish suit, and stands tall with a commanding presence. Behind her on a more solid surface are multiple people, possibly her colleagues or competitors, dressed in business attire, looking devious and scheming. The scene is dramatic and tense, capturing the moment the glass floor is starting to crack under her feet. The image is rendered in a cinematic art style, with dynamic lighting and a sense of depth, emphasizing the fragility and strength in the scene.

The Headlines 📈

Is a glass cliff driving higher churn for women CEOs?

Recent data reveals that CEO turnover is at an all-time high, with average tenures dropping from 9.2 years in 2018 to 7.6 years in 2022. Women CEOs are particularly affected, with a higher likelihood of leaving within two years. The "glass cliff" phenomenon, where women are appointed to failing companies, exacerbates this issue. A lack of support and unrealistic expectations contribute to the high turnover rates for women CEOs. Boards must improve their selection and support processes to enhance gender parity. Read more

The Coffee Break ☕️

The News 📰

BCG among elite group to partner with Harvard's D^3 - Harvard's Digital Data Design Institute (D^3) has formed significant partnerships with JPMorgan Chase, BCG, and Microsoft to explore AI-driven digital transformation. This collaboration aims to enhance decision-making and drive growth by pioneering AI and data science applications into business strategies. Read more.

However, according to BTO readers, it turns out BCG should get back to slides…

Saudi Arabia grapples with reliance on foreign strategy consultants - The Kingdom’s energy minister expressed concerns over the heavy dependency on management consultants. This reliance has grown since the 2016 launch of Vision 2030, aimed at diversifying Saudi’s economy away from oil, into high-growth sectors including AI, gaming, tourism, and cleantech. The kingdom's consulting market expanded to $3bn last year. Read more.

Kearney appoints Bob Willen as new Managing Partner - Willen has been elected as Kearney's tenth managing partner, succeeding Alex Liu, who completed two 3-year terms. Having been with Kearney since 1995 and a partner since 2003, Willen aims to continue the firm's growth and innovation trajectory. Read more.

More layoffs at McKinsey - McK to lay off approximately 360 employees worldwide in response to sector-wide slowdown. The new round of cuts comes after the firm – which has over the years grown into a business with 45,000 staff in 130+ offices across 65+ countries – previously purged 1,400 jobs in its support and back-end teams last year. Read more.

BCG signs major sustainable aviation fuel deal with World Energy - The five-year agreement with World Energy to purchase sustainable aviation fuel certificates aims to reduce emissions by 100,000 metric tons of CO2. Read more.

McKinsey partners in $58 million carbon removal initiative - McKinsey joins major corporations like Stripe and Alphabet in Frontier's new $58 million carbon removal agreements with Vaulted Deep, targeting the removal and permanent storage of 152,000 tons of CO2 by 2027. The deal aims to remove and store 152,000 tons of CO2 by 2027, advancing Frontier's commitment to catalyze the carbon removal sector. Read more.

BDO Canada introduces AI-powered financial solutions - BDO unveiled its AI-driven platform to aid financial institutions to address their clients’ needs in budgeting, wealth management, and credit assessment at the recent Microsoft Executive AI Summit. Read more.

Best of the rest: PwC & EY hit with multi-million fines over LCF audit failures, Grant Thornton to rebrand to Doane Grant Thornton, BCG teams up with Japanese investment platform Itochu to launch new venture.

Reader Poll 📊

Chart of the Week 📊

Factors that drag down employee and organizational productivity could cost a median-size S&P 500 company roughly $480 million a year.

Contribute 🛣️

Submit a news story, idea or tool

View from the Trenches 👀

That’s all folks. Don’t forget your timesheets.

BTO Team

P.S. We’re starting up our socials - give us a follow on LinkedIn and Twitter to get more regular news and BTO content.

Submit anonymous feedback: Love it | It’s great | Good | Okay-ish | Stop it

Boiling The Ocean

Discussion about this post