
Economist Podcasts Consultant management: McKinsey loses its shine
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Aug 5, 2025 Tom Lee Devlin, Business Editor at The Economist and host of Money Talks, dives into the evolving landscape of the consulting industry, examining how McKinsey is grappling with competition and AI advancements. He explores the solo traveler pricing dilemma in airlines, revealing surprising trends that penalize those flying alone. The conversation also celebrates the rise of women's sports bars, highlighting their impact on fan engagement and the growing acceptance of women's athletics. It's a compelling look at industry shifts and cultural changes.
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McKinsey's Expansion Strategy
- McKinsey's revenue doubled from 2012 to 2024 by expanding services.
- Its growth was propelled by investing heavily in digital and acquiring tech consultancies.
McKinsey's Growth Slows, BCG Advances
- McKinsey's growth slowed to 2% with a 5,000-person reduction in workforce.
- Meanwhile, Boston Consulting Group grew robustly by better deploying digital specialists.
Palantir Challenges Traditional Consulting
- New competitors like Palantir grow rapidly by embedding AI and engineers in clients' operations.
- This direct collaboration threatens traditional consulting's role in AI adoption.

