Healthcare: Booz vs McKinsey
I'm considering post-MBA offers in management consulting focused in healthcare from Booz & Co and McKinsey. While a lot of you might say, this is a no brainer - McK has a better brand recognition than Booz, there are some other factors that are complicating my decision.
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Booz is on-boarding me at a higher level - Senior Associate (SA1). They're giving me credit for my 6 years of management consulting experience. McK is having me come in as an entry-level Associate.
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Booz's offer is 25-30% more than McK.
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Booz's healthcare practice is on a strong growth trajectory and there is more "white space" compared to Mck's more mature practice.
Thanks in advance for your feedback!
Wow, I had no idea Booz paid that much more.
if you are staying for short term mck because you can leverage its brand, etc
if you are staying for long term then also mck because after principal or even director level, you make much more than other consulting firms
If OP is killing it as principal and bringing in new clients/projects, wouldn't the comp be comparable across all firms?
I would lean towards Booz if you want to stay in the trenches and try to make partner. Coming in at a higher level will speed up your career progression and maybe allow you to make a larger contribution
Comp won't be similar across all firms because McK (and Bain and BCG) charge substantially higher fees than other firms. So even if OP is bringing in similar # of new projects/clients, comp will be higher at MBB than other firms.
Not going to make a specific recommendation either way, but one important piece of info to consider.
I worked at McK for 3 years. While there, I observed that they were very reticent to give new hires "credit" for previous consulting experience, for whatever reason. However, the culture is extremely merit-based, so you'll be promoted quickly if you are a strong performer. So the gap between Booz and McK in title (and corresponding pay) will close quickly if you perform well.
Here's an example. I work for a PE firm now, and we regularly hire McK for due diligence efforts. On a recent project, the engagement manager from McK had only been at McK for 16 months. It typically takes 2-3 years for a post-MBA associate to make EM at McK. Also, McK would never have this person's first engagement as an EM be a due diligence with a PE firm (PE DD's are generally considered to be the most intense projects). So this person must have already been an EM for 2-3 months, maybe even longer. In other words, he/she got promoted within +/- 1 year.
I knew of several other examples like that while I was a the firm. It most frequently occurred when someone either a had previous consulting experirence; b had previous advanced professional experience (e.g., doctor or lawyer); or c was just a full-on genius and crushed the job.
This was more long-winded than I intended, but my point is that if you're good, McK will promote you quickly, so that initial gap won't be of consequence for very long.
Another point is that the way you're thinking about a growing vs. mature practice could be flipped on its head. It's true that Booz may offer more white space whereas McK's practice is more mature. But another way to look at it is that Booz will do any project they have to in order to gain market share, including over-scoping projects or taking on dull cost-cutting projects, whereas McK is already doing all the "cool" strategy engagements. I'm not saying one is right and one is wrong - it is prob a little of both - but important to think about both sides.
Good luck in your decision!
Thanks a lot Dagwood. That's a very interesting perspecting on promoting people quickly, and great to hear it from a "insider". The McK recruiting manager gave me the same logic but I was less inclined to believe her.
I was leaning towards Booz earlier...This just made my decision tougher
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I'd bet the person Dagwood saw hit EM earlier was a returning Business Analyst who did his or her MBA. they come back in as Sr associates and are expected to step up earlier.
Fully agree with ared Ninj a on cultural fit. If you have pref between the two, don't ignore that.
As stated, go for the cultural fit.
Dagwood is spot on that if you perform well, you can get promoted fast. Let's be blunt: given the timelines to partner at MBB, the limiting factor is not going to be promotion cycles or time at tenure, it's going to be individual performance.
Also should be clear, I'm not suggesting you take McKinsey over Booz., just that the Associate vs Sr Associate thing is a red herring.
Thanks for the feedback on assessing the opportunity based on "cultural fit". However, it's almost impossible for me to judge the culture based on a few interviews. Here are my first impressions.
Folks who have worked there, please feel free to weigh in.
Both have increidbly smart and motivated people. Booz placed a higher emphasis on sector-focus expertise development. McK placed a slighly higher premium on breadth across industries early in the career.
Having consulted with a couple of b-school friends, I was advised that I should pick McK unless the Booz offer was in a sector that they were particularly strong in. An Example would be Booz's Energy practice. Any idea how strong Booz's Healthcare practice is?
It's been about a week since I received both offers. In that timeframe, I've received 4-5 phone calls from various Booz partners congratulating me. McK's sole source of contact has been their hiring manager.
My gut tells me to pick Booz but I'm worries that McK might afford me better exit opportunities due to the better brand recognition.
Don't read too much into the calls you have/haven't received...that's just McKinsey's recruiting style. Your call as to whether you think it's representative of their overall culture, and if so, what that means for you. The way I've had it explained to me is that "People should know that McKinsey is the right choice, we shouldn't have to sell them"
The points about lateraling and exit ops are spot-on. Many people at Booz want to be at McK, don't think it really goes the other way. The "meh" exit ops I get pinged about (from MBB) by headhunters are the ones when I check back are filled by someone from a Booz (or similar) firm...the ones I've interviewed for but didn't get go to MBB exclusively.
I wouldn't go that far on McKinsey recruiting style - if they know you have a cross-offer and you're a high priority candidate, they'll follow up hard. No offense, OP. Have you told McKinsey that you have a cross-offer?
A few other comments:
McKinsey rarely brings ANYONE in above Associate level. I know a partner from another firm (not MBB, but Monitor / Booz / OW caliber) who they brought in at a pre-partner level. And when he started, they had him do studies as an Associate / EM / AP before making partner. You'd probably have a better chance of joining as a Senior Associate if you were joining as an experienced hire rather than out of b-school.
McKinsey partners make more, at least than other MBB partners. And it's not based on individual revenue generation.
Ultimately, you should go with your gut and where you feel wanted. If lack of follow-up from McKinsey is making you feel unloved, choose Booz.
Two thoughts:
First, may want to look into the bullish HC story at Booz. I know of a Booz HC Partner and Principal inNY who have both left to go to BCG. There are a number of Associates looking to do the same.
Second, I echo the thougths shared by Dagwood and Red Ninja. I'm at an MBB now and I can say there are a number of Booz latterals joining every year, across all three firms. Thus the good news is a Booz SA has strong cache. You'll have to stick around until Principal, then if you want to switch - people will listen. Booz SAs/Principles and increasingly Partners can be found in the MBB ranks. Just make sure you are setting yourself up to succeed. Plan on at least 6 months to getting yourself normalized to how your new firm does business. Bust your tail, earn a Star reputation and you'll have all the opportunity you want.
All things being equal - I think the option value of MBB is stronger in the long run. Being at an MBB (no knock on Booz, much respect to their firm) is going to give you a bit of a leg up. That being said, consider what compelling reasons there could be to pick Booz then decide if any of those reasons are big enough.
It sounds like:
1) Cultural fit: difficult to gauge so far. I'd ask for more people to talk to at McK. 2) Comp: Edge goes to Booz. 3) Practice trajectory (I'd be careful with this one. "Growth" trajectory could mean they are starting from a low base) 4) Option value: How set are you on healthcare? Are you a functional expert too? If you're not set on healthcare, the broader opportunities at each firm come into play more.
Good luck!
^are you talking about analyst level (ugrad hire) or associate level (mba hire) when you mentioned these exit options?
At ugrad level, what kind of exit ops are there after 2-3 years (other than b-school)? I know PE is almost impossible outside MBB.
Thanks. I really appreciate the candid feedback.
Full disclosure - I accepted the Booz offer this morning. I just genuinely liked how down-to-earth the partners were.
Charlie - you're correct. McK partners do make quite a bit more. However, after the sent me the offer, I made multiple requests to speak to individuals in the practice. Those requests were essentially ignored. I did mention that I was considering other offers. I guess, I just wasn't a priority hire. On the flip side, Booz went out of their way to make their consultants & partners available.
I realize that I've probably sacrifised on prestige and potential exit opportunities by making this decision. I am interested in PE roles 3-4 years out but they'll be more in an operating role, supporting portfolio companies for a value-add focused fund.
Good decision, IMO - if you liked Booz, it's the best choice. Just curious, which office complex (e.g., MW, Northeast) was your McK offer from?
If you do want to exit into PE at some point, I'd recommend networking with some of the search firms, even before you're interested in moving on. Just try to get on their dist lists, see what kinds of opportunities they have available, and then double-down on building relationships with those you like.
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