McKinsey & Company: A History and Overview
In 1926, a small consulting practice opened in Chicago with a simple promise. Bring order to business decisions. Do it with discipline, not guesswork.
Over time, that practice grew into a global advisory firm. It helped shape how leaders think about management, organization, and change. It also learned what happens when influence meets public scrutiny.
This is the story of how it started, how it grew, and how it kept changing. It is a story of ideas, institutions, and the people who pushed it forward.
The World That Made Room for a New Kind of Firm
In the early 1900s, companies were getting bigger and harder to run. New factories, new supply chains, and new layers of managers created a new kind of pressure.
Leaders had numbers, but many lacked a system to turn numbers into action. They needed help building control, clarity, and accountability across an entire organization.
That need created space for a new kind of adviser. Not a supplier of parts or capital, but a guide for how the whole machine should work.
James O. McKinsey and the Starting Point
The founder was James O. McKinsey. He taught accounting at the University of Chicago. He believed accounting could be more than recordkeeping.
His idea was that strong accounting methods could help leaders manage. It could support planning, control, and better decisions, not just reporting.
In 1926, he formed the firm in Chicago. One early client named in historical accounts was Armour & Company.
How It All Started in 1926
The early work leaned on what was then called management accounting. The focus was practical and direct. Help leaders understand what was happening inside their business.
That meant building systems leaders could trust. It meant turning financial data into guidance for management.
The approach fit the era. Business was scaling fast, and leaders were hungry for methods that felt rigorous and repeatable.
A Turning Point After 1937
In 1937, James O. McKinsey died. The firm faced a hard moment early in its life. When a founder leaves, the work must stand on its own.
The organization reorganized and evolved in the years that followed. Leadership and structure shifted as the team tried to define what the next chapter would be.
In 1933, Marvin Bower had joined the firm. In the years after the founder’s death, he became one of the most important figures in shaping what the firm would become.
The 1939 Split and a New Consulting Branch
By 1939, a split produced two paths. One path continued as McKinsey & Company. Another path became the Chicago lineage that later became A.T. Kearney.
For the main firm, the split forced clarity. What would it stand for, and how would it work as it grew?
Those choices mattered because consulting is not a factory. Its product is trust, judgment, and a team’s ability to deliver under pressure.
Marvin Bower and a Code for Professional Work
Marvin Bower joined in 1933 and later helped define a culture that many people associate with modern management consulting. He pushed the firm toward a professional model, with strong standards and strong internal expectations.
One idea linked to that culture is the “obligation to dissent.” In 1944, it is described as a core professional value. The concept is simple: speak up when you believe something is true, even if it is unpopular.
That idea shaped how teams worked with leaders. It also shaped how the firm described its own identity in the years ahead.
Choosing “One Firm” Over Separate Outposts
As offices expanded, the structure could have drifted into separate local shops. Instead, the firm emphasized a “one firm” approach. It aimed to act as a single global organization, not a loose network.
In 1952, opening the San Francisco office is described as a turning point tied to that “one firm” commitment. The choice was not only about geography. It was about unity.
Even the idea of a headquarters stayed unusual. The firm has said it does not have a traditional headquarters, and that the managing partner chooses a home office.
What the Firm Sells and Why It Matters
Unlike a manufacturer, the firm does not sell a physical product. Its core work is management consulting. It advises organizations in the private sector, public sector, and social sector.
That can mean diagnosing a problem, shaping a strategy, or building a path for change. Over time, it also built platforms and groups focused on digital, analytics, sustainability, and design.
Its business model is built on fees for advisory services. It is governed and owned by partners, and it has described itself as partner-led worldwide.
Early Public-Sector Influence
In the 1950s, the firm’s influence reached beyond corporate boardrooms. It took on work tied to government and national institutions. That type of work raised its profile and expanded what consulting could mean.
In 1954, the firm’s timeline credits it with recommending the creation of the White House Chief of Staff role for the incoming Eisenhower administration. That is a striking claim because it places consultants inside the design of government operations.
In 1958, the firm’s timeline also credits it with helping design the original organization of NASA. In a decade defined by the space race, that kind of work carried a different kind of weight.
Crossing Borders and Becoming Global
As the decades moved on, growth became international. The firm began to build an overseas presence through new offices. That changed how it recruited, staffed projects, and shared knowledge.
In 1959, it opened an office in London, described as its first office outside the United States. That same year, the firm’s timeline also notes development of the “Bank Management Game” with IBM.
In 1976, it opened an office in Tokyo, described as its first in Asia. In 1999, it opened offices in Shanghai and Beijing, deepening its presence in China.
The Ideas That Became Part of Business Language
A consulting firm’s influence often travels through frameworks and language. Once a concept spreads, it can outlive the project that created it. It becomes part of how leaders talk.
Encyclopaedia Britannica credits the firm with developing the “7-S” model in the 1970s. That model became a well-known way to describe alignment inside an organization.
Another system-level contribution appears in the firm’s timeline in 1971. It credits the firm with helping conceive the Universal Product Code system with the grocery industry council and retailers, manufacturers, and others.
Publishing as a Second Stage of Impact
Client work is private, but ideas can be public. Over time, the firm built platforms that shared its thinking more widely. That helped shape its reputation as a place where research and analysis mattered.
In 1964, the firm’s timeline says it launched McKinsey Quarterly. It became a long-running channel for insights and perspectives on management and business issues.
In 1990, it established the McKinsey Global Institute. The fact sheet and firm timeline describe it as an in-house think tank focused on research and analysis.
Institution Building Inside the Firm
As the organization grew, it also built internal routines to keep teams aligned. Culture is harder to protect when a firm becomes global. The more it expands, the more it needs shared norms.
In 1993, the firm’s timeline describes the first global “Values Day,” held on June 4. It is presented as a ritual meant to keep values and standards visible across offices.
The timeline also links the firm’s culture to the “obligation to dissent.” That idea supports a style of work where people are expected to speak plainly, even under pressure.
Growth Through Knowledge Networks
One way a professional services firm scales is by scaling how it learns. That can mean deeper research, shared tools, and stronger internal support teams. It can also mean centers that build expertise for work around the world.
In 2000, the firm’s timeline describes an India knowledge center that later became part of a large global “Client Capability Network.” That signals a move toward industrial-strength internal research and support.
In 2007, the timeline says it created a “third sector” practice to serve nonprofits and NGOs. That reflects a broader view of who the firm served.
Tools and Platforms for Clients
As business became more digital, advisory work also became more tool-driven. Leaders wanted more than a report. They wanted systems they could use to make decisions faster.
In 2011, the firm’s timeline says it created “McKinsey Solutions,” described as an umbrella for web-based tools for clients. This points to a shift from advice alone to reusable systems.
In 2012, the timeline says it created “McKinsey Analytics.” That helped formalize analytics as a core capability, not an add-on.
Digital and Analytics Move to the Center
By the mid-2010s, digital change was no longer a side topic. It became a main storyline for how companies planned, competed, and rebuilt operations. Consulting firms had to evolve or fall behind.
In 2015, the firm’s timeline says it acquired QuantumBlack, tied to advanced analytics and AI work. That deal points to a push to build deeper technical strength.
In 2016, the timeline says it launched McKinsey Digital. It also notes that the Women in the Workplace study launched with LeanIn.Org that year.
Design Becomes a Strategic Capability
Consulting used to focus on strategy and structure. Over time, design became part of the story. Experience, product design, and service design started to matter more for competitive advantage.
The firm’s timeline ties growth of “McKinsey Design” to acquisitions. It notes Lunar in 2015, and Veryday and Carbon12 in 2016.
This shift signals something important. It suggests that business performance was being linked more tightly to how customers experience a product or service.
Climate, Sustainability, and New Platforms
As climate and sustainability moved into boardroom conversations, consulting expanded in that direction too. The firm’s timeline describes multiple initiatives tied to climate work, sustainability platforms, and new acquisitions.
In 2011, the timeline links a climate initiative to publishing a global greenhouse-gas cost curve. It is described as part of a broader effort to help leaders understand emissions and costs.
In 2018, the timeline says it founded Rethinking Recycling. It also says it joined the UN Global Compact.
Building Sustainability Through Acquisitions
Capabilities can be built through hiring and training. They can also be built through acquisitions. The firm’s timeline lists several purchases tied to climate, sustainability, and operational improvement.
In 2020, the timeline says it acquired Vivid Economics and Planetrics. In later entries, it also mentions acquisitions such as Material Economics and Orpheus.
It also describes “McKinsey Sustainability” as a platform. That signals a push to treat sustainability as a core offering, not a special project.
- QuantumBlack (2015) is described in the timeline as a key acquisition for advanced analytics and AI capability.
- Lunar (2015), Veryday (2016), and Carbon12 (2016) are described in the timeline as design acquisitions tied to McKinsey Design.
- Vivid Economics (2020) and Planetrics (2020) are described in the timeline as acquisitions tied to climate and sustainability capability.
- Other timeline-listed acquisitions include Aberkyn, Candid Partners, Material Economics, and Orpheus.
Partnerships That Signal Where the Work Was Going
Big partnerships often show where a firm believes the future will be. They also show which global platforms it wants to influence. In the 2020s, partnerships around industry transformation and sustainability became more visible.
In 2021, the firm’s timeline describes formation of the Global Lighthouse Network initiative with the World Economic Forum. It frames the initiative as tied to advanced manufacturing and the future of operations.
The timeline also notes involvement as a lead partner of the Mission Possible Partnership in 2020. That signals interest in coalitions built around climate and industrial change.
Work, People, and the Culture Behind the Brand
A consulting firm’s product is people. So culture is not a side note. It affects how teams behave under stress, how they build trust, and how they deliver in the field.
The firm’s history materials link culture to values like the “obligation to dissent.” They also point to global rituals like Values Day, first described in 1993.
A later fact sheet also points to investment in learning and knowledge-building. It presents training as a major internal priority, not an afterthought.
How the Firm Organizes Itself
The firm has described itself as partner-owned and partner-governed worldwide. That structure is part of why it often sounds different than a public company. It is not built around quarterly earnings calls.
It has also said it does not have a traditional headquarters. Instead, the managing partner chooses a home office.
In the current era, the fact sheet lists Bob Sternfels as global managing partner, starting in 2021. That provides a clear anchor point for leadership today.
Scale and Footprint in the Modern Era
Over time, the firm moved from a Chicago start to a global footprint. Its reach is part of why its ideas travel fast. A project in one country can shape thinking in another.
The fact sheet describes a presence in over 130 cities and over 65 countries. That scale also explains why it invests in shared training and shared knowledge networks.
It is a large global operation, but it still describes itself as a single firm under partner governance. That is the organizing story it tells about its structure.
When Influence Becomes a Liability
A firm that advises powerful institutions will attract scrutiny. When it works in sensitive areas, the public expects higher standards. When those standards are questioned, the story changes fast.
In 2021, the firm agreed to a $573 million settlement with states and territories tied to consulting work for Purdue Pharma. That settlement became a major public marker of reputational pressure.
In 2024, the firm described a U.S. Department of Justice deferred prosecution agreement tied to conduct related to that work, along with compliance obligations and a ban on certain controlled-substance-related work.
A Second Major Legal Chapter: South Africa
Public scrutiny was not limited to one region. Another major issue involved work tied to South Africa and state-linked entities. This storyline includes public reporting and later U.S. government action.
In 2018, Reuters reported that South African authorities were seeking repayment tied to work connected to Eskom. Coverage in that period also discussed repayment of fees linked to the controversy.
In 2024, the U.S. Department of Justice announced that McKinsey & Company Africa entered a deferred prosecution agreement around a $122 million tied to a bribery scheme involving South African officials.
What These Periods Changed Inside the Firm
Major legal resolutions do not stay in legal departments. They reshape policies, lines of work, and how leaders talk about risk. They also affect recruiting and public trust.
In the 2024 opioid-related deferred prosecution agreement described by the firm and the U.S. Department of Justice, the firm accepted responsibility for conduct tied to Purdue Pharma work and described large payments over time, along with compliance obligations.
These episodes became part of the modern story. They sit beside the older story of values, standards, and influence.
How the Story Changed Over Time
The earliest chapter was rooted in accounting and management control. The next chapter pushed into professional consulting culture and a unified global model. Later chapters moved into research institutions and large-scale publishing.
In the 2000s and 2010s, the story added knowledge networks, web-based tools, analytics, and digital work. The firm’s timeline frames those shifts through new groups and acquisitions.
In the 2020s, the story also includes public legal resolutions that brought intense scrutiny. That dual reality now sits at the center of how many readers understand the firm today.
Lessons People Draw From This Journey
The long arc shows how a service business scales through standards, not factories. It also shows how culture has to be engineered on purpose once a firm goes global. Values do not spread by accident.
It also shows how influence creates responsibility. The more powerful the client work, the more the public asks who benefits, who gets hurt, and who is accountable.
Finally, it shows how a firm can keep reinventing itself. Accounting roots turned into strategy work, then into research, then into digital and sustainability platforms.
Where Things Stand and What’s Next
The fact sheet in 2025 describes a global footprint across more than 130 cities and more than 65 countries. It also describes partner ownership and partner governance worldwide. It frames the organization as one firm, not a network of franchises.
Leadership is anchored by the global managing partner role. The fact sheet lists Bob Sternfels in that role beginning in 2021.
The road ahead includes opportunity and pressure at the same time. Digital and sustainability work continues to expand, while public trust expectations remain high.
Timeline
This timeline follows the major beats from the firm’s start through its modern era. Each entry uses the year as a signpost, the way a documentary might flash a date on screen before the next scene begins.
Some years are about growth. Some are about ideas that spread far beyond a single project. Some are about moments that changed how the world viewed the firm.
Here is the path from a Chicago start to a global presence, shaped by both ambition and accountability.
1926
James O. McKinsey forms the consulting firm in Chicago after building his career as an accounting professor at the University of Chicago.
1933
Marvin Bower joins the firm, later becoming a defining influence on its professional culture and identity.
1937
James O. McKinsey dies, forcing the young firm to reorganize and define its next chapter without its founder.
1939
A split produces McKinsey & Company and the Chicago lineage that later becomes A.T. Kearney.
1944
The firm’s timeline describes the “obligation to dissent” as a core professional value, tied to its culture and standards.
1952
The San Francisco office opens, described as a turning point tied to the “one firm” commitment.
1954
The firm’s timeline credits it with recommending creation of the White House Chief of Staff role for the incoming Eisenhower administration.
1958
The firm’s timeline says it helped design the original organization of NASA.
1959
The London office opens, described as the first office outside the United States.
1959
The firm’s timeline describes development of the “Bank Management Game” with IBM.
1964
McKinsey Quarterly launches, becoming a long-running platform for publishing management and business perspectives.
1971
The firm’s timeline credits it with helping conceive the Universal Product Code system with the grocery industry council and others.
1976
The Tokyo office opens, described as the firm’s first office in Asia.
1970
Encyclopaedia Britannica credits the firm with developing the “7-S” model in the 1970s.
1990
The McKinsey Global Institute is established, described as a research institute and think tank.
1993
The firm’s timeline describes the first global “Values Day,” held on June 4.
1999
Offices open in Shanghai and Beijing, expanding the firm’s presence in China.
2000
The firm’s timeline describes an India knowledge center that later becomes part of a large global client capability network.
2007
A “third sector” practice is created to serve nonprofits and NGOs, as described in the firm’s timeline.
2011
McKinsey Solutions is created, described as an umbrella for web-based tools for clients.
2011
The timeline links a climate initiative to publication of a global greenhouse-gas cost curve.
2012
McKinsey Analytics is created, as described in the firm’s timeline.
2015
QuantumBlack is acquired, strengthening advanced analytics and AI capabilities.
2015
Lunar is acquired, a deal tied in the firm’s timeline to the growth of McKinsey Design.
2016
McKinsey Digital launches, described as bringing together large-scale digital and analytics expertise.
2016
The Women in the Workplace study launches with LeanIn.Org, as described in the firm’s timeline.
2016
Veryday and Carbon12 are acquired, deals tied in the firm’s timeline to the growth of McKinsey Design.
2018
Rethinking Recycling is founded, and the firm joins the UN Global Compact, as described in the firm’s timeline.
2020
The firm shifts to remote and hybrid work during COVID-19 and launches a COVID-19 Response Center, as described in the firm’s timeline.
2020
The firm’s timeline describes a $2 billion cash and in-kind commitment by 2030 for social responsibility.
2020
Vivid Economics and Planetrics are acquired, building climate and sustainability capability, as described in the firm’s timeline.
2020
The firm becomes a lead partner of the Mission Possible Partnership, as described in the firm’s timeline.
2021
The Global Lighthouse Network initiative is formed with the World Economic Forum, as described in the firm’s timeline.
2021
Bob Sternfels becomes global managing partner, as listed in the firm’s fact sheet.
2021
The firm agrees to a $573 million settlement with states and territories tied to consulting work for Purdue Pharma.
2024
A deferred prosecution agreement is announced by the U.S. Department of Justice, and the firm describes a $650 million payment plan and compliance obligations tied to the opioids investigation.
2024
The U.S. Department of Justice announces a deferred prosecution agreement involving McKinsey & Company Africa and payments over $120 million tied to a bribery scheme in South Africa.
2025
A firm fact sheet describes a presence in more than 130 cities and more than 65 countries, partner governance worldwide, and a nontraditional approach to headquarters.
Sources: McKinsey & Company, Encyclopaedia Britannica, U.S. Department of Justice, D.C. Office of the Attorney General, Reuters, Kearney, Kidfly182, CC BY-SA 4.0, via Wikimedia Commons
