World News – USA – What a spectacularly ill-advised idea about McKinsey


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Stat News and the New York Times recently reported that in 2017, consulting firm McKinsey & Company advised Purdue Pharma to give a pharmacy company like CVS discounts for opioid overdosing to any customer in order to make sales with addicting ones and lethal drugs boost. These stories are just the latest, unflattering revelations about the secret company that has seen a slew of bad press in recent years while maintaining its position in the business consultancy field. I spoke to New York writer Andrew Rice, who tentacle-recorded McKinsey’s influence, about what the company’s ethical mistakes say about its culture – and the world in which it operates.

Ben: You wrote a story about McKinsey’s complicated role in managing the financial chaos in Puerto Rico. Are you surprised by the overdose discount proposal?

Andrew: No, I am not particularly surprised by this news for two reasons. First, allegations about McKinsey’s stake in Purdue Pharma have been floating around for some time – they originally appeared in a slightly less damaging form in a Massachusetts AG lawsuit last year.

The second reason is that anyone who reads my story or has watched the steady procession of investigative stories of this nature about McKinsey in other publications (particularly The Times) does so. They solve problems for better or, in this case, for worse.

Ben: The company has definitely been involved in a lot of shady deals lately, from strengthening authoritarian governments to working closely with ICE to extremely high-profile breaches of contract law in South Africa. But this episode is closer to many Americans. Will the terrible PR it gets from this affect its status, which is inevitably labeled « prestigious »? And maybe more in a nutshell, does the company care one way or another?

Andrew: Well, I think McKinsey would argue that he has learned from his recent PR problems. The company’s global managing partner, elected in 2018 by the rest of the partners in a secret process likened to the selection of a Pope, immediately met with remorse. He apologized to the people of South Africa for the company’s involvement in an allegedly deeply corrupt business run by the state energy company. He promised to end the company’s work for ICE after a rare internal uprising over the morale of his support for the Trump administration. (It was later revealed that, according to the Times and ProPublica, the company was providing advice critical to Trump’s border crossing and exploring ways to cut costs in detention centers by « saving pennies on food and medical care. ». ) I think McKinsey as a company is quick to acknowledge that it made PR mistakes. The question is whether the mistakes were just a matter of PR.

There’s one cynical view that I don’t fully accept, but I think it’s true to some extent, that even this bad PR is good for McKinsey’s business. If you’re a large company that has some ethically problematic business problems to solve, who better to hire than the company that isn’t afraid to come up with creative solutions like paying pharmacy premiums for overdoses? I mean, another way of putting it is who wants a conscientious moral consultancy firm? They pay a godless sum of money to McKinsey or the many other companies that like it to give you every possible alternative and never tell anyone about it.

Ben: The company is known to attract young people like Pete Buttigieg, whose work became a hot spot during the Democratic primary. under fire, he called the place “amoral. « Doesn’t this latest type of episode make it less likely that a certain type of person would want to work there so they don’t get tarred with the McKinsey is bad brush? Or does good money just care about that problem?

Andrew: Well, that’s why I said that I don’t fully accept the idea that any advertisement for McKinsey is a good advertisement. What they market is their talent – in fact, it was those who came up with the idea two decades ago that « talent » is the most valuable commodity out there – and if talent thinks they are bad, then good seems to be a problem to be. McKinsey’s partnership is structured in such a way that it is very difficult for executives to get away from the company and the riches that come with it. Among other things, the company’s retirement fund, which functions like a hedge fund, has an oddly stellar track record that the company swears is unrelated to its immense stash of secret corporate knowledge and now has around $ 12 billion in assets disposes. But the vast majority of the actual work on their « engagements » – as the company calls their work – is done by young Ms. B.. . ONE. Guys, and when the quality of their work goes down, customers can start to notice.

The truth, however, is that clients don’t hire McKinsey just for his amazing intelligence. They’re hiring McKinsey to say they hired McKinsey. A former McKinsey partner told me as I was writing my story (and I’m paraphrasing here): « No customer ever hires McKinsey to give them an answer they don’t know. ”

If you’re a CEO of a pharmaceutical company that makes an opioid that kills people, you already know it’s a problem, and you already have a pretty good idea of ​​how to deal with it. In this hypothetical scenario, you hire a company like McKinsey to make it look like you’re not the one coming up with the unsavory options. It gives you some numbers and some options on paper (actually, at least traditionally, a hardback blue book). It also gives you plausible denial. « It didn’t occur to me, Your Honor. It was the consultants! “

Ben: Do you know of any other dubious work McKinsey is doing that may also attract attention?

Andrew: It’s a little hard to know who you’re working for. They’re incredibly secret about their clients and traditionally don’t even confirm or deny who they work for, even in cases where it is publicly known. This has changed somewhat in the last few years, especially when it comes to the company’s growing work for the public sector, which is naturally more open to audits. And there is some work the company likes to talk about openly, at least by McKinsey standards. For example, the company is working with the MTA to try to close its huge operating budget deficits as a result of the implosion in passenger traffic during the pandemic, which the agency has urgently required federal aid to do. McKinsey has worked for both the Trump administration (specifically the Department of Health and Human Services) and the Cuomo administration on pandemic control and has again demonstrated its willingness to play on both sides of the fence. In New Jersey, Governor Phil Murphy – a former Goldman Sachs executive who has long had a symbiotic relationship with McKinsey – is reportedly relying heavily on the company’s advice on pandemic response, paying him at least $ 35 million for his services. (And he won’t part with them anytime soon. ) Even the state of Massachusetts, whose attorney general filed the lawsuit that led to embarrassing revelations about Perdue Pharma, has also relied on the company to help with data collection and control center management when responding to the pandemic. And it’s fair to assume that this public sector work is only the tip of the iceberg when it comes to McKinsey’s activities during the pandemic.

Bad times for the world are good times for McKinsey. The company’s business expanded dramatically after the 2008 financial crisis as companies and governments sought expertise to deal with the disaster and were willing to pay for that advice even as they cut off other things like their workforce. It is reasonable to believe that they are doing brisk business in this time of extraordinary upheaval in the world. Who knows what problems a drug company testing a life-saving vaccine, for example, or a government trying to figure out who should get it first, is asking? It’s probably a pretty good bet that McKinsey is in the middle of a lot of these discussions, although we may never know who they are advising or what their advice might be. I should say that despite all the terrible things that have come out about the company, it is still a repository for an enormous amount of intelligence (literally). . As much as you may criticize McKinsey’s ethical decisions in certain cases, in general they still seem great at what they do, and you might want to be part of it, the answer to the biggest public health crisis, the economy , finance and society to be found in living memory. That’s the thing about amorality: it can go either way.

Ben: It doesn’t sound like you think this latest episode will mean a big change in the way McKinsey does business.

Andrew: I don’t know if it’s possible to say that definitely. As an institution, they are pretty opaque. You may find it in your best interest to avoid particularly embarrassing engagements like this for reputational purposes only. And besides, you know, because I’m sure a lot of the people there are personally appalled. I’m just saying that there is no particular reason to believe that outside pressure for reform will come. Customers will not push McKinsey to change, but McKinsey could push McKinsey to change, albeit within the parameters of corporate culture. You will never be less secret. So if they have changed there is no way to know!

The Trump administration is pushing tough decisions on which Americans will receive the limited early supplies of coronavirus vaccines – and creating a confusing patchwork of distribution plans that could create unequal access to the life-saving shots.

Federal and state officials agree that the 21 million health care workers in the state should come first. However, there is no consensus on how to balance the needs of other high-risk groups, including 53 million adults 65 and older, 87 million key workers, and more than 100 million people with conditions that make them more susceptible to the virus.

The Trump administration has told states that they have ultimate authority to determine who will be vaccinated first. It was also decided to allocate scarce early doses based on the total population of states, resulting in difficult choices in states with higher proportions of high-risk residents – including black, indigenous, and Latin American communities who are suffering from disproportionate hospitalizations and deaths from Covid have suffered. 19th.

Layoffs in the media industry are about to hit an all-time high in 2020, in large part due to the coronavirus pandemic, according to new research.

By the end of October, the industry had an estimated 28. 637 cuts reported. Variety reported almost as many as the record of 28, citing data from Challenger, Gray & Christmas. 803 in the media sector in 2008. In comparison, the sector recorded just over 10 in 2019. 000 job losses and in 2018 15. 474.

Job losses rose in May during the first wave of the coronavirus pandemic in the United States. S.. . After falling in June, layoffs picked up again in the summer and fell to pre-pandemic levels in September and October, Variety said.

The briefing is a collection of high-level intelligence information and other materials on national security issues prepared for the President by senior officials and advisers.

An elected president usually receives the briefings in the weeks before his inauguration in order to ensure a smooth transition process and to protect the interests of the country at home and abroad. The White House reportedly signed the briefings for Biden last week.

Moderna will be the second company after Pfizer to seek FDA approval for emergency use for a COVID-19 vaccine.

The pharmaceutical company Moderna plans to apply to the US Food and Drug Administration for approval of its Covid-19 vaccine on Monday.

The company will ask the FDA to review an expanded record showing that the vaccine is 94. 1% effective in preventing Covid-19 and 100% effective in preventing severe cases of the disease.

« This is noticeable, » said Dr. . Paul Offit, member of the FDA’s Vaccine Advisory Board. “That is amazing data. ”

« It was the first time I allowed myself to cry, » said Dr. . Tal Zaks said. “We fully expect to change the course of this pandemic. ”

Trump was seized from the White House and brooded in a flurry of private conversation after his election defeat, angry and sometimes insane. He told a close adviser, « Mad King George, mumbling, ‘I’ve won. I have won. I have won. ’”

As divided as Trump’s aides might have been over his loss to President-elect Joe Biden, many of them gave in to their boss and encouraged him to continue to struggle with appeals. They were « happy to scratch his itch, » said this counselor. « If he thinks he’s won, it’s like » Shh . . . We won’t tell him. ’”…

In the post-election days as Trump looked for an escape from reality, the president ignored his campaign staff and the professional lawyers who had led him through the Russia investigation and impeachment process, as well as the army of largely lawyers, willing to bring legitimate legal actions.

Instead, Trump empowered loyalists willing to tell him what he wanted to hear – that if the election hadn’t been rigged and stolen, he would have won a landslide – and then sacrifice their reputation by running a campaign in courtrooms and court houses led the media to convince the public of this deception.

President Trump canceled his trip to Gettysburg, Pennsylvania, Wednesday, where he and his personal attorney Rudy Giuliani were due to participate in a Republican-led Senate majority decision on alleged electoral irregularities.

… The cancellation comes after Giuliani was exposed to a second person who tested positive for the coronavirus. It is unclear if this is the reason the trip was canceled.

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McKinsey & Company, Purdue Pharma, Phil Murphy, Opioid, Overdose, Management, Oxycodone, New Jersey

World News – USA – What a spectacularly ill-advised idea about McKinsey


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