Tag Archives: McKinsey Management Consulting

My Dumb MBA Mistake

I’ve made a lot of mistakes. You can’t build a business from scratch without making mistakes. It’s an entire category on this blog, more than 150 posts. This dumb MBA mistake wasn’t my worst, but it’s one of the easiest to explain afterwards, and I hope one that might help others avoid making it too. There is a moral to this story.

Mexico-City-Kainet-Flickr-ccIt was August of 1981, early morning, in the office of John Lutz, managing partner of McKinsey Management Consulting in Mexico City. I was three months out of Stanford with an MBA degree, working for McKinsey Management Consulting in Mexico City.

The McKinsey offices sat in a very stylish high-profile office building overlooking a critical freeway junction over Chapultepec Park, linking the fancy Las Lomas residential area with Polanco and the Paseo de Reforma main business district. The streets were wet from rain overnight, and the freeway was, as almost always, jammed. The sky was dense, a mixture of rainclouds and smog.

I needed to quit. It was so embarrassing. I didn’t like to see myself as the archetypical fancy MBA blowing off the first job. I was 33 years old, married, and my wife was expecting our fourth child. I was way too mature for this stuff. But still …

I had arranged a job waiting for me with Creative Strategies International in San Jose. From where I was, returning back to the San Francisco peninsula, Silicon Valley, seemed like returning from exile back to paradise. I liked Creative Strategies, and liked living back in the states. I wanted out of McKinsey.

I really didn’t like the job with McKinsey. It was stupid to have taken it. It was a job meant for a 26-year-old single person blinded by ambition and unencoumbered by relationships. Like most professional firms, success involved putting up with a corporate culture that spent 12 to 14 hours a day in the office, whether or not there was work to be done. The firm actively discouraged families by encouraging long-term business travel but without families, and by running 5-day strategy meetings at beach resorts and forbidding families coming along, even at the family’s own expense. I was not supposed to disagree with partners on … well, you get the idea.

I certainly didn’t belong. I’d been entrepreneurial for 10 straight years, making my own way with freelance journalism and, later, my own consulting, and I wasn’t up to faking awe for the partners. And as a family, we didn’t belong in Mexico City. I had loved that place for nine years in the 70s, it had been good to me, but I was done. My wife is Mexican, she grew up in Mexico City, and had family there, but she was tired of it too. The city was too big, too hard to deal with. We had left in 1979 and shouldn’t have gone back in 1981. I fell for the money and prestige, stupidly, because it wasn’t enough to keep me.

So, back in the office with John Lutz, did I tell him why I was leaving? That I didn’t like the job, had made a bad decision, didn’t like Mexico, I’m sorry, it won’t work.

No. I didn’t. I told him I needed a lot more money.

This is one of the best arguments ever for telling the damn truth, even when it’s embarrassing. I’m still embarrassed, but I’m older now, and, well, I think this is a good lesson to share.

So they gave me more money, and then how dumb did I look?

I still left, and I left looking really stupid. Why didn’t I just tell the truth in the first place?

So there’s the moral to the story. You’ll be in a situation where you’re tempted to slant away from the truth to make it easier, but remember before you do how bad you’ll look if the other side answers the wrong issue, forcing you to admit it was never the real problem. So here there is. It bothered me for a long time but that was 25 years ago or so, and hey, I’ve made a lot of other mistakes since, the sting has worn off on this one. I hope you find the story useful.

(Image: Mexico City via Kainet Flickr CC)

Folk Wisdom Reversal: Necessity Isn’t the Mother of Invention

This will be hard for anybody under 50 to believe, but there was a time when word processing and spreadsheets were a real productivity advantage.

Are you old enough to remember Visicalc, or maybe SuperCalc? In the very early 1980s, most business people still did budgets with paper and calculator. The spreadsheet power user was way faster than anybody else. It was a great secret weapon for early adopters. It was a huge productivity boost.

Now, of course, we take it for granted. People throw multi-worksheet budgets around like nerf balls. If you’re not done in an hour, well, what’s wrong with you?

It was the same back then with word processing. Are you old enough to remember WordStar? That was power when the competition was working with typewriters. Now, you write fast … so what? So does everybody. Go write your big email and come back in 10 minutes.

Then came desktop publishing in 1985. Can you remember Aldus Pagemaker and the first Apple Laserwriter. It was amazing. Any one person could compete with the graphics department.

And slides? There was Aldus Persuasion, replaced later by Microsoft PowerPoint. When I was with McKinsey Management Consulting back in the early 1980s our office had more graphic artists than consultants, because they had to produce the slides that amazed the clients. How long has it been since anybody was amazed by a slide deck?

Do you see what I mean? At first it’s slick and powerful, doing something way faster than the old way of doing it. And that’s productivity at its best. But soon the advances are taken for granted. The bar of expectations goes up, and you spend the same amount of time.

Which is why the saying is reversed. In these cases, it’s not like it’s supposed to be, necessity as the mother of invention. Invention becomes the mother of necessity.

Does All Of This Improve Productivity?

That’s an interesting question. Ten years ago I would have been tempted to say no, that it hasn’t improved productivity.  More recently I’ve changed my mind.  Running a company makes me sure that we benefit from the power of more detailed budgeting, and running through the daily process of management makes me pretty sure that business documents are generally better communicators with desktop publishing than without.

And the new world of social media, infinite communications possibilities, authenticity and content quality threatening to become more powerful than huge advertising budgets?

What do you think?

(Image: JuditK/Flickr cc)

Is it Possible That MBAs, Like Wine, Need Aging?

It occurs to me that I’ve had many good experiences, with hires and colleagues and business contacts, with people who had MBA degrees and years of experience. And I’ve had generally bad experiences with young MBAs fresh out of business school.

You could guess the reasons. Arrogance and entitlement come to mind.

Maybe it’s a matter of seasoning or tempering that fresh knowledge with some of the battering that comes later. Arrogance and entitlement leave a lot of sharp edges that time and experience wear down.

I am no different. As I got older, I found that my MBA studies gave me a better vision of the whole business, the forest as well as the trees; and I was glad for that. I’m sure that it helped me in business and was worth its weight in money many times over. And what I got from the degree wasn’t a higher salary, it was the knowledge to make my way on my own.

On the other hand, fresh out of business school, I recruited into a fancy and prestigious position with McKinsey Management Consulting, and I fell flat on my face. I disliked them, and they disliked me. (I did a post on that mistake here). I hated that job.

I’ve heard that fewer than one in five MBAs lasts even a year in the first job after business school.

Do you think there’s a pattern there?

(Image credit: JakubPavlinec/Shutterstock)