McKinsey ranks #1? McKinsey is often considered number 1 in the realm of management consulting. Gabriel Goldbrain will provide and discuss the McKinsey company profile and assess how McKinsey ranks in each dimension and where the McKinsey rank can still be regarded as the no 1.
McKinsey has maintained a significant stronghold in management consulting and still today the company is a synonym for strategy consulting. The company was able to consistently hold a prominent position in the market which is what stands out in the McKinsey profile.
The McKinsey revenue grew significantly during the past decade and so did the McKinsey employee number. Not only McKinsey but the whole consulting industry prospered during the past decade. Gabriel Goldbrain will look into McKinsey revenues as well as McKinsey employee numbers in this video and assess the McKinsey market position based on these indicators.
The McKinsey ranking in the management consulting industry has solidified its standing as the market leader measured in terms of revenue and employees. They kept outpacing many competitors. BCG's market position comes close but Bain's market position still is clear number three. So these firms are considered Tier 1 consulting firms. McKinsey's tier 1 competitors such as BCG (the Boston Consulting Group) and Bain, each hold their positions in the hierarchy of consulting firms. BCG ranks 2nd, and Bain ranks third. The future will tell if one of these companies will be able to challenge McKinsey's market dominance and gain ground in the strategy consulting market. Those tier 1 firms are therefore often called MBB firms (McKinsey, BCG and Bain).
Oliver Wyman's market position, Kearney's market position and LEK's market position render these companies clearly as tier 2. Also Roland Berger's market position is a clear tier 2 position, far off from McKinsey if measured in the dimensional number of employees and total revenue, not to forger Alix Partners' market position. Another tier 2 management consulting firm. Other consulting firms are often referred to as tier 3 or big 4 firms (KPMG, PWC/Stratgy&, Deloitte, Ernst & Young / EY Parthenon) Tier 2 firms are different from the MBB firms and among these, still the McKinsey profile stands out most measured by many ranking dimensions.
Video Transcript:
You want to go for the number one management consulting firm? And wondering is McKinsey still number one? Watch this video and find out how McKinsey ranks! I'm Gabriel Goldbrain and I want you to become a high caliber 6 figure Management Consultant.
Well for those of you who don't know McKinsey. It's one of these management consulting firms where you can earn six figure salaries straight out of college. Now let's dive into some facts about McKinsey. McKinsey was founded in Chicago by Oscar McKinsey in the year 1926. Today McKinsey is active in more than 65 country with offices in about 130 cities. Total revenue of McKinsey is about 15 million per year and they serve about 3,000 clients which is quite surprising that they generate such a big Revenue with so few clients. This means per partner they only have about two clients on average and per client they make about 5 million in revenues. On average in 2021 McKinsey employed about 38,000 persons and today in the year 2023 they employ about 45,000 employees. Which shows a quite good growth rate over the past years given the size of the company.
If you're interested in how the employee numbers of McKinsey can be broken down into client facing versus interna roles meaning internal staff versus business Analysts, Associates, Engagement Managers, Partners, Goldbrain made estimates for all of these roles. How many employees McKinsey has? Plus as a bonus what the average take-home salaries for these positions is by country? You will find it in the video as I mentioned.
But now let me show you all what I said in a slide which summarizes the foreset you find this slide under www.gabrielgoldbrain.com. Now let's get to the main topic of this video: How does McKinsey rank versus other companies? And whenever you talk about a number one position you should define what you measure it against, and I think the two most common measurements to measure companies against each other are revenue and the number of employees. And for this comparison we took the 2021/22 figures because those were available for most of the companies and we think, given that all those firms develop quite homogeneously, the ranking didn't change pretty much over the years. As you see on the top right McKinsey measured by revenue is still the number one. The same applies for McKinsey measured by the number of employees. So to answer the topic of this video, yes, McKinsey Still is a number one measured by these two criteria. But don't forget your number one, your personal number one consulting firm, might be a totally different one depending on your criteria because it could be that you're interested in a certain area like you could be interested in a consulting firm which is focused on marketing, which is focused on pricing, which is focused on cost cutting, which is focused on medium-sized businesses not large corporations. And all of that you should factor in before you decide what is your number one?
Well if you made your decision to become a high caliber 6 fig Management Consultant visit my website www.gabrielgoldbrain.com and apply for My SUCCESS training. That way we will ensure that you have the best chances to be accepted in your favorite management consulting firm. And remember you only pay if you succeed otherwise the training is completely free.