Full disclosure: I used to want to work for McKinsey. I interviewed with them in 2013 and made a maths error in the final 5 mins of my final round. Some mistakes are good in hindsight.
The global management consulting firm, McKinsey & Company, paid a settlement of $573 million to 47 US states because of advice it gave to drug makers.
McKinsey advised these companies on how to increase their sales of the opioid pain medication, OxyContin.
Some facts sickened me. For example, in a 2017 slide deck, McKinsey analysed and estimated the number of people that would likely overdose due to the increase in sales. Essentially a cost-benefit analysis on overdosing; prioritising profit over well-being and human decency.
This story reminded me immediately of the McKinsey careers presentation I sat in on almost 10 years ago. A partner of the firm was asked by one of my university colleagues what was his favourite project. The partner proceeded to talk about a complex slot machine optimisation project for Las Vegas casinos.
It left me with a sinking feeling in my gut.
The New York Times reports the OxyContin epidemic has caused over 450,000 deaths over the past two decades. McKinsey, along with drug makers, has blood on their hands.
McKinsey makes about 10 billion in revenue each year. A $573 million settlement equates to a little less than 6% of revenues. I don’t know their exact profit margin, but I do know McKinsey will still make a very healthy profit this year.
This settlement is a wrist slap. It will hurt a little, and it may sting for a while yet, but I worry the flesh inside the beast is still rotten.