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neptunium1 ago

2015:

McKinsey & Company Starts Its Own Version of Bain’s Bridgespan http://archive.is/5F5tX

The announcement that Helene Gayle, the retiring CEO of CARE, was going to be inaugural CEO of the McKinsey Social Initiative struck us as noteworthy for reasons that other press outlets really haven’t covered.

Gayle is certainly an accomplished professional, having run CARE since 2006, and before that serving the Bill & Melinda Gates Foundation as its director of HIV/AIDS programs.

One interesting dimension of the story is the huge McKinsey operation, with $8 billion in annual sales in 2013, forming its own nonprofit consulting firm, as MSI will be. McKinsey has long had a social sector practice, at one time headed by Lynn Taliento, and many McKinsey & Company alumni have had major direct impacts on the nonprofit world. Notable McKinsey alums include Luis Ubiñas, until recently the president and CEO of the Ford Foundation; Sir Ronald Cohen, the British venture capitalist who is a huge promoter of social enterprise tools and techniques such as Social Impact Bonds; Bill Drayton, the founder and chair of Ashoka; Jim Collins, author of Good to Great (and a past contributor to the pages of the Nonprofit Quarterly); Jay Coen Gilbert, co-founder of the B Lab that certifies “B Corporations”; Chelsea Clinton, most recently taking a leadership role in what is now the Bill, Hillary, and Chelsea Clinton Foundation; Sylvia Mathews Burwell, the current HHS Secretary, previously a vice president of the Bill & Melinda Gates Foundation and president and CEO of the Walmart Foundation; and economist Peter Orszag, head of OMB under President Obama and previously with the Brookings Institution.

The Chronicle of Philanthropy suggests that the McKinsey Social Initiative will start life with a $70 million capital infusion from McKinsey & Company plus access to 25 of its consultants to work on MSI projects and advice from 10 McKinsey partners. The Chronicle piece implied that MSI has also started off with a $15 million infusion from USAID—if that’s so, it had to have been in the works when Raj Shah, a former Bill & Melinda Gates Foundation official, was still USAID administrator—and $3.2 million from Walmart

https://archive.is/iuZIG