Boston Consulting and McKinsey are always looking for productivity increases and cost reduction. Contractors have already been minimized, but CVX headcount could be next. It's not rocket science, just a cyclical business, No packages coming this time unless its a corporate wide reduction.
9 replies (most recent on top)
They’re everywhere. Actually not just them Bain was also running around . We are likely the largest users of consulting firms ever. Doesn’t that say a lot about CVX management??? Ie they’re incapable and have to hire surrogates to do their jobs??
Take a look back at past involvement of BCG and McKinsey, every time they're involved there's downsizing and layoffs. Wanna know if there's layoffs coming? Now you know...
We hire them because they own the process and make great slides. Better slides than anyone in Chevron. Our staff don’t have spare time for all that rot.
Its so d-mb. Did they stuff they sold us the last 12 times not work? Why do we need to hire them again?
If you saw the fees these companies charge you would weep. They basically work off a commission of 10% of the savings they calculate. So if they lay off a guy costing $350,000/yr (salary, benefits, desk) that works out to an NPV of around $2 million. If they lay off 100 of those people, that is $200 million and a fee of $20 million. I'm not making this up. The more they lay off, the higher the fee. The faster than can do it, the sooner they get paid.
If we’re using McKinsey and BCG all the time, why do we need the bloated executive staff? That’s your job, do it.
These are the same two groups that have led Chevron to disastrous "transformations" for at least the last 20 years. @2ijk is right, how is it that Chevron management keeps going to these same two companies, particularly when the results have been terrible? Nepotism? Kickbacks?
What I find disappointing is the constant rotation of the two “consulting” groups. Our leadership truly lacks any insight and innovation to help the employees or the company. LT still hasn’t figured out that consulting companies don’t solve, they make it just good enough to where we’ll have to use them again when their solutions crumble.
They’re not just at PASMS…..