In 1940, McKinsey declared:
“Business has been forced to adjust itself to staggering acceleration in the rate of change.”
Eighty-five years later, that acceleration has turned inwards.
Despite its legacy and scale, McKinsey is entering its second century facing deeper challenges than ever before.
Key Signals
→ Revenue growth slowed to 2% in 2024
→ 5,000 roles cut since Q4 last year
→ BCG is set to overtake by 2027, having grown five times faster last year
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The Triple Threat Facing McKinsey
McKinsey is no longer competing on strategy alone. Its challenges come from three directions:
1. Fierce Competition from BCG and Bain
BCG has narrowed the revenue gap dramatically. It grew by 10% last year, compared to McKinsey’s 2%.
At this rate, BCG is expected to overtake McKinsey by 2027.
What we’re hearing in-market is consistent: BCG has deployed digital talent more effectively and retained specialist expertise with greater consistency. Bain also continues to compete aggressively in focused transformation and post-deal execution.
2. Pressure from AI-Native Disruptors
Firms like Palantir and OpenAI are reshaping what “consulting” looks like.
Palantir deploys engineers directly with clients to deliver results, not advice.
OpenAI’s enterprise services embed deeply into workflows, helping corporates operationalise foundation models.
These firms scale quickly, integrate tightly, and increasingly own the last mile of delivery. This is territory where consultancies once held dominance.
3. Internal Tensions at McKinsey
McKinsey’s move into delivery—digital builds, operations, procurement—expanded its revenue base but diluted its differentiation.
This shift pulled the firm into competition with Accenture and the Big Four. These are spaces with tighter margins and greater delivery risk. Internally, the firm is now wrestling with the balance between high-fee strategic clarity and lower-fee implementation work.
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What’s Driving the Shift?
The Model Is Being Unbundled
→ Strategy used to mean structured thinking and structured decks.
→ Now AI handles the decks. Clients are questioning fees when foundational work is automated.
Execution Blurred the Brand
→ Delivery work brought growth. But it also exposed McKinsey to operational complexity and pricing pressure. The lines between strategy and execution have become harder to defend.
New Challengers, New Playbooks
→ Palantir’s “forward-deployed engineers” and OpenAI’s embedded advisors are challenging the consulting model from within. These are not traditional advisors. They are integrated operators.
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What’s Ahead for McKinsey’s Second Century?
To lead into its second century, McKinsey will need to:
→ Sharpen focus. Broad capability without a clear edge will not hold.
→ Compete on speed and execution. Fast thinking and fast doing will define the next phase.
→ Redefine its distinctiveness. AI is democratising tools. Value now lies in clarity, confidence, and application.
Its core offering—judgment, trust, and high-stakes clarity, remains strong.
But the old margin for mediocrity no longer exists.
Clients will not pay for polish. They will pay for outcomes.
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A Note on Perspective
McKinsey’s trajectory is worth watching.
But let’s be honest. It attracts more media oxygen than the rest of the industry combined.
McKinsey has not lost its edge.
It is still the market leader.
But it does not represent the full picture.
At Strat-Bridge, our work across the UK and DACH region reveals a more nuanced reality.
Clients are not buying size.
They are buying clarity, speed, and judgment.
This post comments on:
The Economist: How McKinsey lost its edge
3-August 2025
Ben Appleton is the founder of Strat-Bridge, a specialist executive search partner to the strategy consulting industry. He works with global consulting firms and senior leaders across the UK, Germany, Switzerland, and beyond — helping them build capability at the Partner and Director level.
