McKinsey and Failing Airlines. McKinsey was the central “consultant” at Swissair during the several years that led to the destruction of the Swiss airline. Their “work” cost Swissair about $60 million dollars while it lost all profits, revenues, and assets. McKinsey is also well-known for having preached at Enron, and presented that company as a success to emulate, until the fall. Business Week: Many of the intellectual underpinnings of Enron came from McKinsey…
NYT: Now that United Airlines has filed for bankruptcy protection, the critical challenge facing the airline… is to find a business strategy that works. To that end, United has hired McKinsey…
Why McKinsey? While Andersen helped cook the books at Enron, didn't McKinsey also play a key role in that massive failure? [Jinn of Quality and Risk]
Note: the article also lists some recommendations from McKinsey on how United can improve performance. Unfortunately, these improvements will barely offset the monthly fees McKinsey is charging the airline. [John Robb's Radio Weblog]