Consultants are paid to provide outside consensus. They strengthen the CEO’s perceived smartness. They give it validity. McKinsey, because of its brand, provides the most value to a CEO in the boardroom.
In theory they provide advice in areas that the company is not expert in. E.g. a pharmaceutical company would ask a consultant to recommend and implement an accounting system.
I thought CEOs commanded wildly exorbitant salaries because they were super smart and made all the decisions. Why would a consulting firm exist?
Consultants are paid to provide outside consensus. They strengthen the CEO’s perceived smartness. They give it validity. McKinsey, because of its brand, provides the most value to a CEO in the boardroom.
In theory they provide advice in areas that the company is not expert in. E.g. a pharmaceutical company would ask a consultant to recommend and implement an accounting system.