Profile of McKinsey & Company

Managing Partners (1926–Present)

James O. McKinsey (Founder; Managing Partner 1926–1937)

James “Mac” McKinsey was a University of Chicago accounting professor who founded McKinsey & Company in 1926 . He pioneered the use of budgeting as a tool of management, shifting focus to financial planning and control as key to running a company . Under his leadership the firm billed itself as an “accounting and management” consultancy advising top executives on organizational efficiency . McKinsey set an enduring tone of rigorous analysis, developing a 30-page General Survey Outline in 1931 to systematically evaluate a company’s finances, organization, and competitive position . In 1935 he temporarily left the firm to turn around retailer Marshall Field & Co., where he applied his ideas (e.g. refocusing the business on its core retail operations) and proved their merit . However, he died unexpectedly in 1937, which nearly splintered the young firm. His legacy was a belief in “scientific management” and careful planning in business, as well as the initial vision of consulting to healthy companies, not just ailing ones . This vision set the stage for a firm that would help clients restructure for changing corporate, social, and technological environments, rather than merely fixing immediate problems .

Guy Crockett (Managing Partner 1939–1950)

After James McKinsey’s death and a brief merger with an accounting firm, McKinsey & Co. was reconstituted in 1939. Horace “Guy” Crockett, who had led the New York practice, became managing partner of the new McKinsey & Company (focused on management consulting) . A seasoned executive (he had been an accounting firm partner), Crockett provided steady operational leadership during World War II and the 1940s, while his deputy Marvin Bower concentrated on long-term strategy . Under Crockett, the firm’s principles were refined – notably via a 1937 memo that Bower drafted, which outlined McKinsey’s mission to focus on major management problems, maintain the highest standards of integrity and technical excellence, and build a self-perpetuating partnership of top-caliber professionals . Crockett supported Bower’s push to restrict the firm solely to consulting (separating from the audit business) and to serve only top management with an objective, fact-based approach . By the end of Crockett’s tenure, McKinsey had established a presence beyond its Chicago roots, opening a New York office and laying groundwork for post-war expansion. He stepped down around 1950, making way for Marvin Bower’s election as managing partner . Crockett’s low-key but firm stewardship, in tandem with Bower’s conceptual guidance, ensured the survival and professionalization of McKinsey in its early years.

Marvin Bower (Managing Partner 1950–1967)

Often called the “father of modern McKinsey,” Marvin Bower is credited with defining the culture, values, and professional norms that still guide the firm . Trained as a lawyer (with degrees from Brown, Harvard Law, and HBS), Bower joined McKinsey in 1933 and believed consulting should adhere to standards akin to a law firm . As managing partner, he established McKinsey’s core values in 1937, instructing that client interests must come before firm profits, consultants must tell clients the truth even if inconvenient, and the firm should only accept work it could do well and that was truly necessary . Bower also introduced the “up or out” policy (modeled after law firms) in 1951 – consultants who weren’t promoted had to leave, to maintain a high-performing meritocracy . He insisted McKinsey work primarily with chief executives on top-management issues, which elevated the firm’s status and impact . Under Bower’s leadership, McKinsey expanded internationally for the first time (opening offices in Europe in the 1950s) and incorporated as a partner-owned firm in 1956 . He personally set an example of partnership by selling his ownership shares back to the firm at book value in 1963 rather than cashing out, establishing a tradition of long-term stewardship over short-term gain . By the time Bower stepped down in 1967, McKinsey had grown from a small U.S. practice into a prestigious global consulting firm anchored in a one-firm partnership ethos and a reputation for integrity. His legacy – professionalism, client dedication, one-firm culture, and knowledge building – became the bedrock of McKinsey’s identity .

Gilbert “Gil” Clee (Managing Partner 1967–1968)

Gil Clee was Bower’s hand-picked successor, a World Bank alumnus who had championed McKinsey’s early overseas expansion in the 1950s . Prior to becoming managing director, Clee had been instrumental in opening McKinsey’s first European office – London in 1959 – working with Bower to overcome partners’ reluctance and sending experienced consultants (like Hugh Parker) to seed the new office . When Clee took the helm in 1967, he aimed to continue Bower’s legacy of values and global growth. Unfortunately, his tenure was cut short – he died of cancer in 1968, after only about a year in charge . Despite his brief term, Clee is remembered for reinforcing McKinsey’s global outlook and “one-firm” philosophy. He wrote shortly before his death about the importance of McKinsey’s values, reminding colleagues that the firm’s success depended on holding true to its principles regardless of market pressures . Clee’s untimely passing led the firm to quickly seek new leadership, but his influence lived on in the international mindset and principled culture he helped nurture.

Chester W. “Chet” Walton (Managing Partner 1968–1973)

Stepping in after Clee’s death, Chet Walton guided McKinsey through the late 1960s and early 1970s – a period of both expansion and rising competition. Walton had been a senior partner and experienced leader in McKinsey’s Chicago and New York offices. During his tenure, McKinsey grew to six U.S. offices and six abroad by 1966 (including Paris, Amsterdam, Melbourne) , and one-third of revenue came from Europe . However, new competitors like BCG and Bain emerged, offering distinctive analytical frameworks and threatening McKinsey’s dominance . Walton recognized the firm risked becoming too geographically dispersed and lacking depth in industries. In 1971 he commissioned the “Commission on Firm Aims and Goals”, an internal task force to soul-search McKinsey’s strategy . The commission’s report concluded that McKinsey had overemphasized geographic expansion and needed to build strong industry and functional practices to deepen its expertise . This pivotal finding under Walton’s watch prompted McKinsey to slow its expansion and invest in knowledge development. Walton began implementing these recommendations, laying the groundwork for the practice-driven model that followed . By 1973, he prepared to hand off leadership to a new generation. Walton’s tenure is thus characterized by introspection and strategic refocus – he kept the firm stable through turbulent times and took the first steps toward the specialization that would define McKinsey in the years ahead.

Alonzo L. McDonald (Managing Partner 1973–1976)

Alonzo “Lon” McDonald succeeded Walton and led McKinsey in the mid-1970s. A Harvard MBA and former U.S. Marine, McDonald was a dynamic leader who had run McKinsey’s London office and served clients globally . As Managing Partner, he began implementing the 1971 commission’s recommendations by formalizing practices and improving the firm’s industry focus. McDonald expanded McKinsey’s reach in Europe and was known for pushing the firm to be more results-oriented and financially disciplined. Under his brief leadership, McKinsey further institutionalized processes like strategic planning for the firm itself . However, McDonald’s tenure was cut short; in 1977 he left McKinsey to enter public service as Deputy U.S. Special Trade Representative under President Jimmy Carter . During roughly three years at the helm, he had modernized some of McKinsey’s management practices and brought fresh energy, but also reportedly emphasized growth and profitability in ways that later drew mixed reviews . McDonald’s departure was sudden – leaving McKinsey’s partners to quickly elect a new leader – yet he is remembered for kick-starting the firm’s evolution from a purely generalist advisory firm to one developing structured knowledge areas. His post-McKinsey career (which included roles at the White House and later founding a private equity firm) further underlined his reputation as a bold, visionary executive.

Ronald “Ron” Daniel (Managing Partner 1976–1988)

Ron Daniel took charge at a critical juncture and is credited with fundamentally transforming McKinsey’s structure and knowledge system. A Harvard MBA who had joined McKinsey in the 1950s, Daniel was known for his intellectual rigor. During his 12-year tenure, he led McKinsey away from the pure generalist consultant model by establishing Centers of Competence – roughly 15 specialized working groups focusing on industries or disciplines . With senior partner Fred Gluck, Daniel built formal practice areas in Strategy, Organization, and Operations, among others . This move responded to the Commission’s call for deeper expertise: rather than just assigning whoever was available, McKinsey began developing teams of specialists with domain knowledge. Daniel also initiated McKinsey’s first firm-wide knowledge management efforts. In 1987, he created processes and IT systems to capture lessons from client engagements and to connect consultants with internal experts globally . These were pioneering steps in turning McKinsey into a “knowledge-driven” firm. Despite an economic slowdown in the early 1980s, Daniel’s strategy paid off: by the late 1980s McKinsey resumed strong growth, opened new offices (including in Rome, Helsinki, São Paulo) , and could better compete with rivals’ analytical frameworks by offering its own well-honed points of view. Culturally, Ron Daniel reinforced one-firm partnership and professional development (he was a mentor to many future leaders). His impact was a more systematic, expertise-based McKinsey that could leverage its global knowledge for clients – a model that endures today.

Frederick “Fred” Gluck (Managing Partner 1988–1994)

Fred Gluck, previously head of McKinsey’s strategy practice, became managing partner in 1988 and accelerated the firm’s growth and organizational innovation. A former Bell Labs engineer, Gluck applied a strategic mindset not only to clients but to McKinsey itself. During his six-year term, the firm’s revenues doubled . Gluck reorganized McKinsey into “7 sectors and 7 functional areas”, grouping the burgeoning practice areas into 72 “islands of activity” to balance specialization with collaboration . This structure helped McKinsey manage an eightfold growth (by headcount) from 1977 to 1997 . Gluck also encouraged internal entrepreneurship – for example, in 1990 McKinsey created the McKinsey Global Institute (MGI), a research arm to study macroeconomic and business trends , reflecting Gluck’s belief in investing in intellectual capital. Not all experiments succeeded; in 1989 Gluck oversaw McKinsey’s attempt to acquire an IT consulting firm (ICG) to jump-start digital capabilities, but a culture clash led many of those hires to leave . Nonetheless, Gluck’s tenure cemented the norm of formal industry and functional practices globally and the use of knowledge development as a competitive advantage. He was also known for pushing decision-making downwards – empowering practice leaders around the world. By the time he stepped down in 1994, McKinsey was larger, more global, and structurally prepared to handle its own scale. Gluck’s strategic and organizational innovations positioned McKinsey for the tech and globalization waves of the 1990s.

Rajat K. Gupta (Managing Partner 1994–2003)

Rajat Gupta was the first McKinsey leader born outside the U.S. – an Indian-born IIT and Harvard MBA graduate who rose rapidly through the firm. His election as global managing partner in 1994 symbolized McKinsey’s evolution into a truly international firm. During Gupta’s nine-year tenure, McKinsey saw extraordinary global expansion. The firm’s headcount grew from about 2,900 to 7,700, and offices increased from 58 to 84 locations worldwide . Gupta opened landmark offices in emerging markets such as Moscow, Beijing, and Bangkok, extending McKinsey’s reach into Eastern Europe and Asia . Strategically, he built on his predecessors’ work by creating 16 industry practice groups, ensuring consultants developed deep expertise in sectors like banking, pharmaceuticals, telecommunications, etc. . Under his watch McKinsey also formally added new practice areas, including a Manufacturing Practice and a Business Technology Office in the late 1990s to address the growing importance of IT . Gupta instituted a three-term limit for the managing partner role (three-year terms), standardizing leadership succession . Culturally, colleagues recall Gupta as a charismatic consensus-builder who reinforced the “one firm” spirit even as the partnership spanned the globe. By the early 2000s, more than 60% of McKinsey’s revenue was coming from outside the United States . Gupta also presided over McKinsey’s involvement in advising dot-com startups in the late 1990s (even accepting equity as fees in some cases) . When the dot-com bubble burst and a recession hit in 2001, Gupta led cost controls but notably avoided layoffs, emphasizing the firm’s commitment to its people . His tenure had its challenges, but overall Gupta’s impact was globalizing McKinsey at an unprecedented scale and pushing the firm into new domains. (It should be noted that several years after his term, Gupta became embroiled in an insider trading case unrelated to his McKinsey leadership; while this tarnished his personal legacy, McKinsey itself reaffirmed its commitment to Bower’s values in the aftermath .)

Ian Davis (Managing Partner 2003–2009)

Ian Davis, a veteran from McKinsey’s London office, led the firm through the mid-2000s with a focus on re-centering values and navigating the post-dot-com landscape. Elected in 2003, Davis immediately emphasized a “return to McKinsey’s core values” after the rapid growth of the previous decade . He wanted to ensure that expansion had not diluted the firm’s heritage of professionalism and client-first integrity . Under Davis, McKinsey continued to grow internationally – by 2004, over 60% of the firm’s revenue came from outside the U.S., reflecting the strong global client base . He also oversaw the establishment of an Asia-Pacific headquarters in Shanghai in 2003 to support the booming Asian practice . A notable development during Davis’s term was McKinsey’s increased commitment to social sector and public sector work: the firm launched a Social Sector Office in 2008 to channel its work for governments, NGOs, and philanthropies . This included many pro bono engagements, aligning with Davis’s view of McKinsey’s broader role in society. Internally, he further institutionalized knowledge development – by 2002 McKinsey was investing heavily in knowledge management (over $35 million annually) . Colleagues describe Davis as a calming, diplomatic leader who steered McKinsey through the aftermath of the dot-com bust and into the turbulence of the 2008 financial crisis. He encouraged the firm to help clients with core business issues during the crisis while upholding McKinsey’s standards. In sum, Ian Davis’s impact was to consolidate McKinsey’s global gains, reinforce cultural consistency, and extend the firm’s mission to the social sector, keeping McKinsey trusted through uncertain times.

Dominic Barton (Managing Partner 2009–2018)

Dominic Barton led McKinsey through the post-2008 financial crisis era and a time of technological disruption, with a vision of embracing new markets and “long-term capitalism.” A Canadian by birth and leader of McKinsey’s Asia practice, Barton was elected in 2009 as the global managing partner and served three terms. He championed an aggressive push into emerging markets, believing the future of the firm and its clients lay in Asia, Africa, Latin America and the Middle East. Under Barton, McKinsey dramatically expanded its footprint in China, India, and Africa, opening new offices and recruiting local talent. By 2013 McKinsey had offices in over 50 countries, including growing operations in Lagos, Nairobi, and Doha. Barton also drove McKinsey’s adaptation to the digital age: the firm acquired or built capabilities in digital strategy, data analytics, and design, bringing in professionals from different backgrounds to complement traditional consultants . Strategically, he became an outspoken thought leader on reforming business for the long term. In 2011, Barton wrote “Capitalism for the Long Term” in Harvard Business Review, urging CEOs and investors to focus on long-term value creation and broader stakeholder impact. He co-founded initiatives (like FCLT Global – Focusing Capital on the Long Term) to combat short-termism in business . Within McKinsey, Barton encouraged partners to help clients tackle big-picture issues such as sustainability, demographics, and technology disruption. The firm’s revenues and size grew substantially during his tenure, reportedly reaching over $10 billion in annual revenue by the end of his term. Culturally, Barton placed new emphasis on purpose and societal responsibility, reflecting in part a response to public criticism of management consultants. His era was not without controversies – McKinsey faced scrutiny for certain client engagements in this period – but Barton responded by reinforcing professional standards and transparency. Overall, Dominic Barton’s impact was extending McKinsey’s global reach to new horizons and starting to reposition the firm for a world where business success is measured in decades, not quarters.

Kevin Sneader (Managing Partner 2018–2021)

Kevin Sneader’s tenure was short (one three-year term) yet noteworthy for the culture shifts he sought amid reputational challenges. A Scot who had led McKinsey in Asia, Sneader took office in 2018 as McKinsey’s first global managing partner based in Hong Kong . At that time, McKinsey was under fire for its involvement with controversial clients and incidents (e.g. a South Africa government scandal and its work with opioid manufacturers). Sneader moved decisively to repair the firm’s reputation and tighten risk controls. He publicly apologized for past lapses and introduced tougher policies on client selection – for example, instituting “hard-and-fast rules” against serving certain government entities in non-democratic countries and other high-risk work . Sneader pushed a “back to basics” message, reminding consultants that McKinsey’s purpose was to serve clients with integrity and create lasting impact, not just to maximize profits. He also prioritized diversity and inclusion within the firm’s ranks, launching internal programs to advance women and minority consultants into leadership. Additionally, Sneader accelerated investments in analytics and implementation services, continuing Barton’s direction of expanding beyond pure strategy advice. Despite these efforts, in early 2021 McKinsey’s senior partners voted not to re-elect Sneader for a second term – an unusual outcome attributed to a mix of factors, including displeasure among some partners over the firm’s direction and the handling of the reputational crises. In his short time, Kevin Sneader ushered in important cultural changes around risk, accountability, and openness, attempting to close a “dark chapter” for McKinsey . His initiatives foreshadowed many of the reforms the firm would continue under his successor.

Bob Sternfels (Managing Partner 2021–Present)

Elected in 2021, Bob Sternfels is the current global managing partner and has focused on sustaining McKinsey’s growth while emphasizing trust and societal impact. Sternfels, a nearly 30-year McKinsey veteran from the San Francisco office, had previously led practices in operations and private equity . Taking over after Sneader, he continued the effort to rebuild external trust – doubling down on McKinsey’s values of client service and professional integrity. Sternfels has overseen McKinsey’s expansion into implementation, digital transformation, and sustainability consulting, in part through acquisitions of over 25 specialized companies in recent years . This has broadened McKinsey’s capabilities beyond strategy – under Sternfels the firm describes itself as a full “impact partner,” helping clients not only plan but also execute changes. Financially, McKinsey achieved record revenues (about $16 billion in 2023) during his leadership . Sternfels has been vocal about “sustainable and inclusive growth” – both for McKinsey’s clients and the firm itself . He has championed initiatives in climate change (advising companies on decarbonization) and in inclusive economic development (such as McKinsey’s Institute for Black Economic Mobility). Internally, he has continued to drive diversity in the partnership and encouraged collaboration across the global firm’s now 700+ senior partners . Colleagues see Sternfels as a consensus-builder who balances the firm’s long-term vision with the immediate needs of clients emerging from the pandemic and facing rapid change. In sum, Bob Sternfels’s ongoing tenure is marked by growth with purpose – expanding what McKinsey does for clients while ensuring the firm’s work is in line with its values and contributes positively to stakeholders.

Key Thought Leaders and Intellectual Contributors

Beyond its formal leaders, McKinsey’s influence has been shaped by consultants who developed breakthrough ideas, frameworks, and writings that have impacted management thinking. These individuals, often working within McKinsey’s research and client projects, became thought leaders in their own right.

Tom Peters – In Search of Excellence and the 7-S Framework

Tom Peters was a McKinsey consultant in the 1970s who co-authored one of the most influential business books of all time: In Search of Excellence (1982). Peters (with co-author Robert H. Waterman, also a McKinsey consultant) led a research project at McKinsey reviewing dozens of successful companies to identify what made them outstanding. The result was In Search of Excellence, which distilled eight principles of management excellence (such as “close to the customer,” “productivity through people,” and “value-driven”) that resonated with managers worldwide and marked a shift from the analytical, strategy-heavy focus of the 1970s to a renewed emphasis on culture and people. Featured in that book was the “7-S Framework” – developed by Peters, Waterman and other colleagues at McKinsey in the late 1970s . The McKinsey 7-S Framework (Structure, Strategy, Systems, Skills, Style, Staff, and Shared Values) posited that seven interdependent elements must be aligned for an organization to be effective . This holistic model was a watershed in organizational thinking: it argued that “soft” factors like culture, style, and staff are just as critical as structure and strategy. The 7-S Framework became a staple in management consulting and education, underscoring McKinsey’s intellectual contribution beyond pure strategy. Peters’s work – and his energetic personal style – also helped popularize the idea of excellence in management during the 1980s. He left McKinsey in 1981 and became a high-profile author and speaker, but his McKinsey-born insights (like 7-S and the excellence themes) continued to enhance McKinsey’s reputation as a source of cutting-edge ideas. In essence, Tom Peters bridged academia and practice, bringing practical yet inspirational wisdom to executives, and he remains a prominent management guru decades later.

Ed Michaels, Helen Handfield-Jones, & Beth Axelrod – The War for Talent

In the late 1990s, a team of McKinsey consultants led by Ed Michaels (along with Helen Handfield-Jones and Beth Axelrod) studied a pressing issue for companies: attracting and retaining high-performing employees. Their research (1997) coined the term “the War for Talent,” signaling that competition for executive talent was becoming a critical driver of corporate performance . In 2001, Michaels, Handfield-Jones, and Axelrod published the book The War for Talent (Harvard Business Press), which declared that building a strong talent pipeline should be every company’s top priority . They argued that great talent was scarce and made an outsized impact, so companies needed to radically elevate their recruiting, development, and retention practices – treating talent management as strategically as finance or marketing. This idea struck a chord in the business world, kicking off what became a global focus on talent management, employer branding, and leadership development. The authors (all leaders in McKinsey’s Organization Practice) provided data and case studies showing companies with robust talent practices outperformed others. They introduced concepts like “A players” (top 20% of performers) and urged firms to differentiate rewards and opportunities to keep their stars. The phrase “war for talent” entered the management lexicon and remains widely used to describe the competitive labor market for skilled knowledge workers. Internally, this work also reinforced McKinsey’s own emphasis on recruiting and developing exceptional people (a core part of the firm’s ethos since Marvin Bower’s time). Michaels and his co-authors thus stand out as McKinsey thought leaders who shone a spotlight on people strategy as a source of competitive advantage, influencing HR practices globally.

Kenichi Ohmae – Strategy Guru and “Mr. Strategy”

Kenichi Ohmae, often called “Mr. Strategy,” was a senior McKinsey partner who led the firm’s Japan practice for many years and became one of the world’s leading strategic thinkers. With a doctorate in nuclear engineering from MIT, Ohmae joined McKinsey in 1972 and spent 23 years at the firm . He co-founded McKinsey’s Strategic Management practice and brought a distinctive East-West perspective to corporate strategy . Ohmae’s 1982 book The Mind of the Strategist introduced Japanese strategic planning concepts to a Western audience, emphasizing flexible, creative thinking over rigid planning. He is credited with the 3C’s Model (focusing on Customers, Competitors, and the Corporation) as a simple strategy framework. In the 1980s, Ohmae also anticipated globalization in his writing – notably in Triad Power (1985) and The Borderless World (1990), he described how regional economies (Japan, U.S., Europe) would integrate . As head of McKinsey Japan, Ohmae helped many Japanese corporations globalize and many Western companies understand Japan’s competitive tactics. He famously introduced concepts like just-in-time (JIT) production and total quality management insights from Japan to his Western clients . Through columns, books, and speeches, Ohmae turned strategic analysis into a mainstream business topic, and his ideas on focusing on key factors for success influenced McKinsey’s client work worldwide. Ohmae left McKinsey in 1995 to pursue public service and academia (even running for Governor of Tokyo). His intellectual legacy within McKinsey includes a pragmatic, internationally informed approach to strategy, and he inspired many consultants to blend analytical rigor with creative insight. Kenichi Ohmae exemplifies the McKinsey thought leader who becomes a public management guru while still deeply rooted in client work and practice leadership.

Other Influential McKinsey Contributors

McKinsey’s history is replete with consultants who developed frameworks and ideas that shaped business thinking or who pioneered new practice areas. A few notable examples include:

Jon Katzenbach & Douglas K. Smith

Senior McKinsey partners who co-authored The Wisdom of Teams (1993), a bestselling book that explored how high-performance teams work. They argued that small groups with a common purpose and complementary skills can outperform individuals, and they provided practical guidance on team formation and management . This work came as companies were adopting team-based structures, and it cemented McKinsey’s reputation in organizational performance thought leadership. Katzenbach (known for organizational culture expertise) later left to found his own firm, but McKinsey’s Organization Practice benefited from his insights on teamwork and employee motivation.

Barbara Minto

The first female MBA consultant hired by McKinsey (in the 1960s), Barbara Minto became legendary for developing the Minto Pyramid Principle in the 1970s – a framework for structured communication in consulting . As a McKinsey trainer, she taught consultants to structure their writing and presentations by starting with the answer or main point, then supporting it with grouped arguments (a top-down “pyramid” logic). She also coined MECE (Mutually Exclusive, Collectively Exhaustive) as a way to break down problems. Minto’s Pyramid Principle, eventually published as a book in 1987, has been adopted well beyond McKinsey and is a staple in business writing courses . It exemplifies how McKinsey’s internal best practices (in this case, communication clarity) have become influential in the wider business world.

Richard N. Foster

A McKinsey partner for 30 years, Foster founded the firm’s Technology and Innovation practice and led groundbreaking research on how technological change affects corporate longevity. He authored Innovation: The Attacker’s Advantage (1986) and co-authored Creative Destruction (2001), which showed that even the largest companies must continually innovate or be overtaken – finding that the average lifespan of big companies on the S&P 500 was shrinking over time . Foster’s work on the dynamics of innovation and “creative destruction” (a term borrowed from economist Schumpeter but quantified in corporate context) urged business leaders to embrace new ideas and even disrupt their own businesses. As an emeritus director, he continued to advise on healthcare and innovation. His research, backed by McKinsey’s Corporate Performance Database, reinforced the firm’s credibility in evidence-based strategy and has influenced CEOs and investors regarding the importance of innovation. Notably, Foster’s stature was such that The Wall Street Journal named The Attacker’s Advantage one of the year’s best business books , highlighting how McKinsey ideas reached a broad audience.

Lowell L. Bryan

A longtime McKinsey partner and author who contributed significantly to ideas on organizational design and financial strategy. Bryan was behind concepts such as “horizontal organization” and the need for companies to break down silos to improve performance. He wrote Mobilizing Minds (2007) about unleashing organizational knowledge, and earlier, in a 1990s McKinsey Quarterly article, he revisited McKinsey’s own classic 7-S framework in light of the information age. Bryan also led the creation of some of McKinsey’s knowledge capital on banking and capital markets. His work on organizational agility and value creation added to McKinsey’s thought leadership portfolio (indeed, he was the one presenting the 7-S framework’s enduring relevance decades later ).

(Many other McKinsey figures have made intellectual contributions – for instance, Ian Davis and Elizabeth Stephenson’s work on globalization, James Manyika’s leadership of McKinsey Global Institute research on technology and productivity, or more recently, partners like Eric Schmidt (not to be confused with Google’s Eric Schmidt) on digital transformation – but the above illustrate how McKinsey’s impact extends beyond client engagements to shaping business discourse.)

Pioneers of Practices and Geographic Expansion

From its early days, McKinsey’s growth and evolution have been driven by individuals who pioneered new functional or industry practices and opened new geographies for the firm. These pioneers identified nascent client needs or untapped markets and built McKinsey’s presence there, often from scratch.

Geographic Expansion

In the 1950s, under Marvin Bower’s encouragement, McKinsey ventured abroad – a bold move at the time for an American firm. A key figure was Hugh Parker, a Cambridge-educated consultant who, after doing studies for Royal Dutch Shell, became the resident manager of McKinsey’s very first overseas office in London (opened 1959) . Rather than hiring local outsiders, McKinsey’s policy (shaped by Bower and partner Gil Clee) was to send experienced “McKinsey people” like Parker to transplant the firm’s culture and standards to new countries . London’s successful launch – profitable by 1960 and serving British blue-chip clients – paved the way for a string of new offices: Geneva (1961), Amsterdam (1964), Paris (1967), and beyond . In each case, McKinsey partners such as Jean-Pierre De Vermond in Paris or Ruemond Fletcher in Amsterdam acted as trailblazers. Later, in the 1970s, figures like Kenichi Ohmae in Tokyo established McKinsey’s foothold in Asia, as discussed above. Ohmae not only led the Tokyo office but also localized McKinsey’s practice for Japan’s unique business environment, eventually growing it into one of the firm’s largest offices. Similarly, in Australia, Ian Ilott opened McKinsey’s Melbourne office in 1962. In the 1990s and 2000s, pioneers in emerging markets – for example, Rajat Gupta championing India (Delhi office opened 1992) or Kito de Boer driving the Middle East practice – extended McKinsey’s global network to every continent. These geographic entrepreneurs had to adapt McKinsey’s consulting approach to new cultures and industries, recruit and train local talent, and establish credibility often without an existing client base. Their success meant that by the 2010s, over half of McKinsey’s revenue was from outside the U.S., fulfilling Bower’s early vision of a global firm .

Functional and Industry Practices

McKinsey’s rise as a powerhouse also came from developing specialized expertise areas, often spearheaded by individual partners who foresaw emerging client demands. A landmark moment was the 1974 formation of dedicated practice “competence centers”, initiated by Ron Daniel and a group of forward-thinking partners. For example, John L. Neuman in the Operations practice developed a methodology for overhead cost reduction (publishing “Make Overhead Cuts That Last” in HBR, 1975) that became a foundation of McKinsey’s productivity improvement offerings . In the late 1970s and early 80s, McKinsey formalized Strategy, Organization, and Operations practices, each led by pioneers: Fred Gluck (Strategy), Tom Steiner (Organization), and Bill Purcell (Operations) were among those who built playbooks and research agendas for these domains. The Operations Practice, for instance, expanded under leaders like Johannes Vieleers in manufacturing and John Stuckey in supply chain, who introduced clients to lean manufacturing and other innovations. McKinsey’s Financial Services Practice grew under Lowell Bryan and others who advised banks during deregulation in the 1980s. The Healthcare Practice was launched by partners including Ted Marmor and later expanded by Mel Horwitch, addressing the complex regulatory and innovation challenges of that industry.

By the 1990s, as technology began transforming business, McKinsey set up its Business Technology Office (BTO) in 1997 – one of the first tech-focused groups among top consultancies . Visionaries like Michael Bloch and Andy Wright helped establish McKinsey’s IT strategy methodologies, while David Court pioneered work in digital marketing and data analytics. In the 2000s, seeing the sustainability trend, McKinsey formed a Climate Change Special Initiative, with directors like Matt Rogers and Jeremy Oppenheim advising companies and governments on carbon abatement (their 2007 report on U.S. greenhouse gas abatement, for instance, became highly influential ).

Carter Bales (profiled in detail below) is a prime example of a practice pioneer who founded multiple new service lines (e.g. environmental consulting, IT, and public sector). Another is Lenny Mendonca, who in the 2000s led the Public Sector Practice and co-founded McKinsey’s Government Practice in Washington, DC, bringing private-sector rigor to public entities. In some cases, McKinsey alums pioneered sectors after leaving – George Stalk, a former McKinsey consultant, became a leading strategist at BCG (developing time-based competition), but had first explored those ideas at McKinsey.

Carter Bales – Builder of New Practices and Firm Strategist

Carter F. Bales stands out as a McKinsey leader who drove significant innovations in the firm’s practice areas and internal strategy. Joining McKinsey in 1965 after an MBA at Harvard, Bales rose to become a senior director and served on McKinsey’s Board for seven years . Over his two decades as a partner (1978–1998 as a Director), he was the founder of multiple major practices that expanded the firm’s scope. Specifically, Carter Bales started McKinsey’s Environmental Management practice, recognizing early on (in the 1970s) that environmental and ecological issues would become strategic for businesses and governments . This made McKinsey one of the first consulting firms to offer dedicated environmental strategy services. He also launched the Information Industries practice, catering to clients in telecom, media, and technology as those sectors were transformed by deregulation and digital convergence . In addition, Bales founded the State and Local Government practice, bringing McKinsey’s expertise to public sector entities (he had a personal passion for public service, advising NYC Mayor John Lindsay in the 1970s on fiscal issues via an “issue mapping” approach he helped develop) . Another practice he stood up was Media and Communications, which later grew into McKinsey’s global TMT (Technology, Media, Telecom) practice . Beyond founding these new verticals, Bales also led McKinsey’s Information Technology practice, guiding clients in the early days of IT strategy and systems planning .

Inside the firm, Carter Bales played a pivotal role in defining McKinsey’s own strategy and organization. In the early 1980s, as a member of the Board, he led a project to rethink McKinsey’s strategy – essentially crafting a long-term plan for how the firm should position itself and invest in capabilities . This internal strategy work informed subsequent decisions to expand certain practices and geographies. Colleagues recall Bales as someone who combined analytical rigor with entrepreneurial creativity – he could both crunch the numbers and envision new possibilities for the firm. He was also a mentor to many younger partners who went on to lead practices.

After retiring from McKinsey in 1998, Bales didn’t stop innovating. He stayed on as an emeritus advisor, especially on environmental and sustainability matters . He was instrumental in projects like McKinsey’s seminal 2007 greenhouse gas abatement cost curve study, which informed climate policy debates . Outside of McKinsey, he co-founded an environmental private equity firm (NewWorld Capital Group) to invest in clean energy and sustainable businesses . This second career mirrored his McKinsey work – focusing on the intersection of business and the environment, long before “ESG” became a buzzword.

Carter Bales’s impact on McKinsey is multifaceted: he expanded the firm’s service portfolio into areas that are now core parts of McKinsey (public sector, tech, sustainability); he helped chart McKinsey’s corporate direction during a period of growth; and he embodied the firm’s values by applying its problem-solving approaches to public and social issues (e.g., advising city governments and conservation efforts). In doing so, he exemplified the McKinsey philosophy of “obligations beyond the firm” – using one’s expertise for broader societal benefit, a notion Marvin Bower championed. Bales was also known for his collegial style – as one obituary noted, “Carter had a distinguished business career as a long-time Director of McKinsey…but his passion for the environment and public service defined much of his life.”

Sources: McKinsey & Company archives and publications; Harvard Business School case studies; The Firm by Duff McDonald; McKinsey Quarterly and Harvard Business Review articles; Wikimedia Commons (images); and other business history references as cited throughout . Each citation corresponds to the source material that informed the preceding statements.