Spend Matters 50/50: McKinsey & Co. – A Provider to Know in 2015

100 companies - 100 days

We announced here and here our two (not ranked) lists: Spend Matters 50 To Know and 50 To Watch firms for 2015/2016. In the first case, this is our view of the 50 solution provider type organisations in the procurement industry that every senior procurement leader should be aware of and understand. The 50 To Watch are the up-and-coming firms  - those with interesting and relatively new solutions for our market. The 50 To Know are the key organisations in our industry that procurement executives need to have on their radar.

Having announced the lists, our US colleagues are now featuring each of the 100 firms in turn with an article giving an overview of each, with some headline Spend Matters thoughts on them. So on this site we will be giving you a brief extract of the US article, plus adding our own comments where we have anything useful to add from a European perspective. Sometimes we do, sometimes we don’t!

Here is what our US colleagues had to say about McKinsey & Co.

"McKinsey & Co. is easily the largest and most recognized strategy-consulting firm in the world. But, it also has a very strong procurement practice within its larger operations mega practice. Out of roughly 8,000 McKinsey management consultants, we’d estimate that almost a third are in operations and almost a third of that are in procurement – putting them into the 700-800 employee range.

There is a natural synergy between McKinsey’s procurement practice and broader strategy projects commissioned by the C-level (predominantly CEO). McKinsey has well-honed diagnostics and benchmarks to queue up cost savings opportunities to then translate to procurement transformation projects (much to the chagrin of other consulting firms), but it doesn’t just rely on top-down selling ..."

There's more here on our US website.

In the UK and Europe specifically, our perception is that the firm is slightly more strategically focused and less operational than in the US, although as we reported recently, they are carrying out some work on "savings" for the Crown Commercial Service as we speak. Indeed, their success in winning large amounts of work with the health sector and Ministry of Defence in particular, despite their premium pricing, is either a testament to their skills or an indictment of the public sector's procurement skills!

Having personally (Peter Smith speaking here) been through the McKinsey recruitment process many years back, we tend to the former thoery. The firm recruits seriously bright people, and nothing but seriously bright people. I fell at the final hurdle for reasons that in retrospect were largely about me being a bit arrogant, so probably a good decision on their part. The way they manage their alumni network is a work of genius in its own right too!

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.