Dangerous Company: The Consulting Powerhouses and the Businesses They Save and Ruin

Management consulting is a $50 billion business worldwide, with $25 billion in revenues generated in the U.S., according to the authors, who argue here that as business becomes more globalized, the influence of consultants is expanding. O'Shea and Madigan, journalists with the Chicago Tribune, do a highly creditable job of describing the negative as well as the positive roles consultants have played. Management consulting began shortly after WWI in Chicago, when James McKinsey, an academic, turned his passion for accounting into a philosophy of management strategy and established McKinsey & Co. His firm rose to prominence with its work for the troubled giant Marshall Field in the early 1930s that was capped when McKinsey was named chairman of the retailer in 1935. After a two-year term, he died at 47. The company that bears his name is widely considered the most influential consulting firm in the world today, primarily because a number of McKinsey consultants have moved on to run major corporations, such as Louis Gerstner, chairman of IBM. O'Shea and Madigan take an in-depth look at several major consulting companies and examine their strengths and weaknesses. A number of case studies are also included, the most entertaining being the story of Bain & Co.'s Olivier Roux's role in a scandal involving the British company Guinness and its attempt to acquire Distiller's in 1986. This fast-paced book provides practical advice on the best way for companies to use consultants. (Aug.)