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The Robots are Eating McKinsey's Lunch (And Yours is Next)
So, McKinsey & Company, the consultants who tell everyone else how to run their business, are "rethinking the nature of the work that we do." Oh, really? You don't say. Last I checked, the nature of their work was telling companies to lay people off and then charging them a fortune for the privilege.
Apparently, AI is shaking things up so much that they're changing how they bill clients. Instead of charging by the hour – because, let's be real, who actually knows what consultants do all day? – they're moving towards "performance-based arrangements." Meaning, they only get paid if they actually deliver results. Well, that's a first. About time these guys had some skin in the game. AI is reshaping how McKinsey makes money
The "Transformation" Hustle
Kate Smaje, global leader of tech and AI at McKinsey, says this shift developed because they're doing more "multi-year, multidisciplinary, transformation-based work." Translation: they're selling clients on massive overhauls that take years and involve every department, so they can justify those sweet, sweet consulting fees. And the best part? They're calling themselves "genuine partners." Give me a break. They're still getting paid either way.
This whole “transformation” thing sounds less like helping businesses and more like a snake oil salesman peddling a cure-all. Are they really transforming businesses or just stringing them along for years while collecting hefty checks? I guess time will tell, but I am not holding my breath.
CFOs Playing Defense
Meanwhile, over in the land of CFOs, everyone's getting all conservative with their budgets. According to McKinsey’s Kevin Carmody, CFOs are "protecting the downside." Which, in normal person speak, means they’re scared shitless about the future and are hoarding cash like squirrels preparing for a nuclear winter. CFOs are reaching for downside budget protections, McKinsey exec says
Carmody says CFOs are being "really careful about what they must spend versus what is a ‘nice-to-have’." You know what's "nice-to-have?" Maybe not laying off half your workforce so some consultant can tell you to "optimize synergies." Just a thought.
And let's not forget those "realistic stretch targets" Carmody mentions. It's the CFO's job to massage the numbers until they look just ambitious enough to keep the shareholders happy, but not so ambitious that they get fired when they inevitably fail to meet them. It's a delicate dance, offcourse.
The Inevitable Robot Uprising
So, what does this all mean? It means the robots are coming for McKinsey's jobs too. And if they're coming for McKinsey, they're coming for everyone else. Raj Sharma from EY is already talking about a "service-as-a-software" approach, where clients pay based on outcome. Which sounds suspiciously like replacing consultants with algorithms.
But here's the real kicker: McKinsey is admitting that "the fundamentals of the professional services model are coming under challenge." They're basically saying the gravy train is about to derail. And honestly, good. Maybe it's time we stopped paying people exorbitant fees for telling us things we already know. Maybe it's time to trust our own damn judgment for once. Then again, maybe I'm the crazy one here.