The recent John Oliver episode on the consulting firm McKinsey shed light on various unethical practices the firm engaged in, including advising Purdue Pharmaceuticals while also advising the FDA, identifying dissidents on a project for the Saudi government, and their role in promoting income inequality among other controversies. The episode sparked a broader conversation around the role of management consulting in society and the importance of ethical behavior in our profession. In this blog post, I explore the value of management consulting, the need for ethical behavior, and the need to live our values.
Management consulting is a valuable service for companies of all sizes and industries. Consultants offer fresh perspectives, strategic advice, and access to specialized expertise that many organizations might not have on staff. However, just as with any profession, consultants are prone to failings and shortcomings. The McKinsey scandals are a reminder that we must be vigilant about ethical behavior and hold ourselves accountable to the highest standards.
As management consultants, we are human beings, capable of making mistakes. McKinsey’s missteps are a reflection on our profession but not an inditement of management consulting as a whole or even all the consultants at McKinsey. However, we must also recognize the immense responsibility and trust that are bestowed upon us as advisors. Our clients expect us to offer unbiased advice that is in their best interest, and we must honor that trust.
To fulfill our role as trusted advisors, management consultants take a similar approach as many other professions – having a strong skillset, a dedication to excellence, and a commitment to ethical behavior. Unfortunately, in the case of McKinsey, it seems that the firm, at times, prioritized its own financial interests over its clients’ interests or societal concepts of ethical behavior. While that behavior is unacceptable, it is not unique to McKinsey or even to consulting. These are issues that professionals from all walks of life must manage.
What made McKinsey’s actions more jarring is the juxtaposition between their behavior and their stated value to be a force for good in the world. I believe that is what the firm aspires to, but the firm and its members have not always lived their values. For me that is a key lesson from the show and McKinsey, we should always be conscious of living our values.
As management consultants, I strongly believe that we need to hold ourselves to high standards of conduct including:
- Don’t be Evil – To borrow a phrase formerly used by Google, we should not be evil. I like this value because it is simple, easy to understand, and easy to explain. We don’t have to contort ourselves trying to describe all the things that could be wrong, we generally know evil when we see it . . . don’t be that. The watered-down version of this is the front page of the Wall Street Journal test. If whatever is being contemplated showed up on the front page of the WSJ (above the break) would it be something we are proud of or would we be going into damage control. If the later, don’t do it.
- Client First – the term “Client First” has become a cliche in our profession, something we sometimes say without enough thought or meaning behind it. The reality of living “Client First” is very simple, when faced with a decision about what is best for the consultant, the firm, or the client; do what is best for the client. Our profession exists because clients retain us and pay us to advise them, it is our responsibility to act in their best interest.
- Have Unquestionable Ethics – Both ethics and the law provide guidance on definitive outcomes – good or bad, right or wrong. Under the law, lawyers seem to take great pleasure in delving into statutes and regulations to find nuanced meaning and technical arguments for or against an action. That is where the two diverge, if we end up splitting hairs in an ethics discussion we have already lost. Our goal should be to deliver our engagements and carry ourselves in such a manner that our ethics are never questioned.
- Be Value Focused – Our profession exists to create value in exchange for fees, and it needs to be value for our clients. Our goal should be to create extraordinary client value in exchange for fair fees. This means that we need to give each client engagement its due attention and diligence, we are never going through the motions. Have we given our all to our clients each day and at the end of an engagement does the client have a work product that addresses their business challenge? Each client engagement should deliver a real, verifiable positive ROI.
- Be Trustworthy – Our clients are putting their trust in us by giving us access to their most sensitive information and engaging us as advisors. Our obligation is to continuously strive to be worthy of that trust.
This code of conduct may be difficult to live up to, but our profession is not easy. We should all aspire to conduct ourselves by this or a similar code in all our internal and external interactions. McKinsey’s stated goal is admirable, however, when push came to shove, they didn’t always live their values. I believe we should be less focused on our brand identities and more concerned about the work we do, how we do it, and the value we are providing our clients.