McKinsey's "AI Transformation" Sounds More Like a Desperate Reinvention
So, McKinsey & Company is "rethinking the nature of the work" they do? Give me a break. It's consulting, people. They repackage the same tired advice with a new buzzword every few years. First it was "synergy," then "disruption," now it's AI.
This whole "AI transformation" thing sounds suspiciously like a fancy way of saying, "We're scared AI is going to replace us, so we're trying to glom onto it for dear life." Consultants, especially the high-priced ones at McKinsey, have always sold themselves as being smarter than everyone else. Now, suddenly, AI is the smartest kid in the room, and they need to buddy up fast.
The "Outcomes-Based" Shell Game
The shift to "outcomes-based pricing" is particularly rich. Instead of charging by the hour – which, let's be real, was a license to print money – they're now tying their fees to actual results. Sounds great, right? Except who defines "success"? McKinsey? And what happens when the "transformation" fails? Do they give the money back? Don't hold your breath.
About a quarter of McKinsey's global fees come from this pricing model, they say. "Clients who were undertaking 'big career bets' appreciated the company saying, 'Hey, look, your scorecard with your board is our scorecard, and we're both successful when this transformation works, so let's share in the upside,'" said Smaje.
"Big career bets"? Scorecards? Upside? It all sounds like corporate doublespeak for "We're going to charge you a fortune, and if things go south, we'll blame it on the market." This isn't about partnership; it's about shifting risk while still raking in the dough. The shift in pricing developed over the past several years as McKinsey started doing more multi-year, multidisciplinary, transformation-based work for clients, though the proportion of 20% "is probably more recent, the last few years," and they expect it to increase, she added.
And let's not forget the "deep implementation expertise" McKinsey now supposedly offers. Last I checked, these guys were strategy consultants, not software engineers. Are they suddenly going to start coding AI models? I highly doubt it. More likely, they'll be outsourcing that work to some underpaid developers while taking a hefty cut for "managing" the process.
The Talent Mirage
All this talk about AI also conveniently glosses over the fact that McKinsey, like every other consulting firm, is in a constant talent war. The best and brightest are increasingly drawn to tech companies, not soul-crushing PowerPoint factories. So, how do you attract top talent? You slap "AI" on everything, offcourse. It's the equivalent of putting a spoiler on a minivan.
Speaking of talent, my neighbor's kid just got rejected from their summer internship program. Kid's got a 4.0, perfect SATs, the works. What gives? Maybe McKinsey is only hiring robots now. Probably cheaper, too. Are you a robot?
Raj Sharma, EY's global managing partner for growth and innovation, told Business Insider in January that the power of AI agents is forcing his firm to reconsider its commercial model.
Similar to McKinsey, instead of charging clients based on the hours and resources EY might spend on a project, Sharma said AI agents may call for a "service-as-a-software" approach where clients pay based on outcome.
"This is a moment where many of the fundamentals of the professional services model are coming under challenge," Smaje said in the media briefing. "The fastest learners that are going to win in this space."
AI ain't going to solve the fundamental problem: McKinsey still needs smart people who can actually deliver value, not just regurgitate buzzwords.
It's Just the Same Old Scam, Rebranded
So, what's the real story here? McKinsey is scared. They see the writing on the wall: AI is coming for their jobs. And their response isn't to adapt and innovate; it's to slap a fresh coat of paint on the same old consulting model and hope no one notices the difference. Good luck with that.