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Canada's privatised shadow civil service
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PJ O’Rourke once quipped that “The Republicans are the party that says government doesn’t work and then they get elected and prove it.” But conservative parties have unlikely allies in the project to discredit public service: neoliberal “centrist” parties, like Canada’s Liberal Party.
If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2023/01/31/mckinsey-and-canada/#comment-dit-beltway-bandits-en-canadien
The Liberals have become embroiled in a series of scandals over the explosion of lucrative, secretive private contracts awarded to high-flying consultancy firms who charge hundreds of times more than public sector employees to do laughably bad work.
Front and centre in the scandal, is, of course, McKinsey, consligieri to opioid barons, murdering Saudi princes, and other unsavoury types. McKinsey was brought in to “consult” on strategy for the Business Development Bank of Canada (BDC), a Crown corporation that gives loans to Canadian businesses.
https://www.cbc.ca/news/politics/business-development-bank-canada-hudon-mckinsey-1.6720914
While there, McKinsey performed as per usual, veering from the farcical to the grotesquely wasteful. Most visible was the decision to spend $320,000 on a livecast fireside chat between BDC president Isabelle Hudon and a former Muchmusic VJ that was transmitted to all BDC employees, which featured Hudon and the host discussing a shopping trip they’d taken together in Paris.
Meanwhile, BDC has been hemorrhaging top people, which leaving the organisation with many holes in its leadership — the kind of thing that would pose an impediment to its lofty goals of substantially increasing the support it gives to businesses run by women, First Nations people and people of color.
Hudon — a Trudeau appointee — vowed to “start from scratch” when she took over the organisation, but then went ahead and did what her predecessors had done: hired outside consultants who billed outrageous sums to repurpose anodyne slide-decks full of useless, generic advice, or unrealistic advice that no one could turn into actual policy. They also sucked up BDC employees’ time with endless interviews.
The BDC has (reluctantly) disclosed $4.9m in contracts to McKinsey. The CBC also learned that Hudon parachuted several cronies from her previous job at Sun Life into top roles in the organisation, and that BDC had reneged on promised promotions for many long-term staffers. Hudon also repeatedly flew a chauffeur across the country from Montreal to BC to drive her around.
In Quebec, premier François Legault hired an army of McKinsey consultants at $35,000 per day to advise him on covid strategy, for a total bill of $8.6m. McKinsey’s contract with the province stipulated that they wouldn’t have to disclose their other clients, even in the event that they had conflicts of interest:
https://www.cbc.ca/news/canada/montreal/caq-legault-mckinsey-pandemic-consulting-1.6602374
The contract was kept secret, as was the long-running, $38m contract between McKinsey and the Hydro Quebec power authority:
https://ici.radio-canada.ca/nouvelle/1927738/mckinsey-hydro-quebec-consultants-barrages-affaires
Most of the bad press McKinsey gets revolves around the evil advice it gives — like when it advised opioid companies to pay cash bonuses to pharma distributors for every death-by-overdose in their territory (no, I’m not making this up):
https://pluralistic.net/2022/06/30/mckinsey-mafia/#everybody-must-get-stoned
But these rare moments of competence should be understood in the broader context in which McKinsey isn’t evil, they are merely utterly, totally fucking useless. The 2022 French Senate report on McKinsey really digs into this:
http://www.senat.fr/commission/enquete/2021_influence_des_cabinets_de_conseil_prives.html
They find that a quarter of the work McKinsey turned in was “unacceptable or barely acceptable in quality.” This is in line with the overall tenor of work performed by consultants. For example, when it came to giant Capgemini, the French Senate found that the work it provided was “of near-zero added value, indeed sometimes counterproductive.”
And yet, despite the expense and “near-zero added value,” hiring outside consultants is a reflex for neoliberal centrist leaders. Trudeau has presided over a massive expansion of the Canadian government’s reliance on outside consultants:
https://www.theglobeandmail.com/politics/article-liberals-spend-billions-more-on-outsourced-contracts-since-taking/
After campaigning on a promise to reduce outside consultancy, the Trudeau administration increased consultant spending by 40%, to $11.8 billion. This shadow civil service is not just more expensive and less competent that the real civil service — it is also far more opaque, able to fend off open records requests with vague gestures towards “trade secrecy.”
Since 2015, McKinsey has raked in $101.4m in federal contracts, even as the civil service has been starved of pay. Meanwhile, federal departments insist that they need to “protect Canada’s economic interests” by not disclosing outside contracts, and list their total spend at $0.00.
https://nationalpost.com/news/outsourcing-contracts-mckinsey-billions
The Professional Institute of the Public Service of Canada estimates that between 2011–21, the Canadian government squandered $18b on outside IT contracting that could have been performed by public servants. In 2022, the Government of Canada spent $2.3b on outsource IT contracts, while the wage bill for its own IT staff came in at $1.85b.
It’s not like these outside IT contractors are good at their jobs, either. The most notorious example is the ArriveCAN covid-tracking app for travellers, the contract for which was awarded to GCstrategies, a two-person shop in Ottawa, who promptly turned around and outsourced it to KPMG and other contractors, whom they billed to the government at $1,000–1,500/day, raking off 15–30% in commissions.
For months, the origins of the ArriveCAN app were a mystery, with the government insisting that the details of the contractors involved were “confidential.” But ArriveCAN was such a steaming pile of shit, and so many travellers (a population more likely to be well-off and politically connected than the median Canadian) had to deal with it, that eventually the truth came out.
The ArriveCAN scandal is ongoing — just last year, it cost the Canadian public $54m:
https://www.theglobeandmail.com/politics/article-arrivecan-subcontractors-multinationals/
Trudeau’s Liberals didn’t invent outsourcing high-stakes IT projects to incompetent grifters. Under Conservative PM Stephen Harper, Canada paid IBM to build Phoenix, an utterly defective payroll system for federal employees that stole millions from civil servants, bringing government to a virtual standstill. Thus far, the Government of Canada — which paid IBM $309m to develop Phoenix, as a “cost savings measure” — has paid $506m in damages to make good on Phoenix’s errors:
https://www.theglobeandmail.com/politics/article-ottawa-paid-out-400-million-in-phoenix-pay-compensation-to-federal/
The Liberals didn’t invent Phoenix — but they did deploy it, after campaigning on the wastefulness and incompetence of the Tories’ outsourcing bonanza. And after Phoenix crashed and burned, the Liberals increased outsourcing spending.
All of this is well-crystallized in last week’s Canadaland discussion between Jesse Brown and Nora Loreto:
https://www.canadaland.com/podcast/853-the-indulgent-consultant/
And on his Substack, Paul Wells proposes that the Senate — a largely ornamental institution in Canadian politics — is the unlikely check of last resort on the Liberals’ fetish for outsourcing:
There are former deputy ministers at the federal and provincial levels, secretaries to cabinet, a former Clerk of the Privy Council, a former chief of staff to a prime minister. A lot of them can remember the days when big decisions weren’t farmed out to firms that make their founders rich and are spared the rigours of accountability for their counsel. Surely some of them would like to shine a light?
https://paulwells.substack.com/p/shine-a-brighter-light-on-contract?
Image: Sam (modified) https://commons.wikimedia.org/wiki/File:The_Canadian_House_of_Commons.jpg
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[Image ID: The legislative chamber of Canada's House of Commons; behind the speaker's chair, the back wall has been replaced by an enormous $100 bill. The portrait on the $100 bill has been replaced with an unflattering, braying picture of Justin Trudeau. The Bank of Canada legend across the top of the note has been replaced by the McKinsey and Company wordmark.]
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lastweeksshirttonight · 6 months
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Of all the things I have actual knowledge of, I don't think I expected John to cover consulting firm McKinsey. In my time in the audit industry (I think this is the first time I'm mentioning working in finance! It sucked), it was obvious the business community had a severe case of fawning over them undeservedly. Every McKinsey employee I ever met was an entitled prick, unable to critically think their way out of a paper bag, or both.
I am not shocked that their best skill as a company seems to be "acting as a puppet of the Saudi regime and getting journalists killed".
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follow-up-news · 4 months
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Consulting firm McKinsey & Co has agreed to pay $78 million to resolve claims by U.S. health insurers and benefit plans that it fueled an epidemic of opioid addiction through its work for drug companies including OxyContin maker Purdue Pharma. The settlement was disclosed in papers filed on Friday in federal court in San Francisco. It marked the last in a series of settlements McKinsey has reached resolving lawsuits over the U.S. opioid epidemic. Plaintiffs accused McKinsey, one of the leading global consulting firms, of contributing to the deadly drug crisis by helping drug manufacturers including Purdue Pharma design deceptive marketing plans and boost sales of painkillers. McKinsey previously paid $641.5 million to resolve claims by state attorneys general and another $230 million to resolve claims by local governments. It has also settled cases by Native American tribes. Friday’s class action settlement, which requires a judge’s approval, resolves claims by so-called third-party payers like insurers that provide health and welfare benefits.
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sushis4kalyo · 1 year
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Sauvez le tourisme en France : proposez des vacances culturelles ! 😁
J'vois plein de gens qui s'inquiètent du tourisme en France avec tout ce qui se passe ... alors qu'en vrai, si on regarde bien, on peut vraiment adapter nos offres touristiques à l'actualité !
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J'ai tilté ça en voyant de plus en plus de photos de gens, probablement des touristes, se faisant prendre en photo devant les poubelles et feux à Paris. Du coup, je me suis décarcassée pour qu'on puisse rester une bonne destination des tours opérateurs, voici quelques pistes :
Faire vivre la révolution française 2.0 aux touristes : Certains manifestent déjà devant les ambassades françaises, on peut convier les touristes qui sont déjà sur place à ce moment culturel 100% français ! On peut leur fournir une fourche sponsorisée par FO, une casquette à strass CGT et un photographe les prend en photo ! Imaginez comment ils seront fiers de raconter à leur famille comment ils ont accompagné les français dans leur lutte ! C'est pas donné à tout le monde de participer à un moment historique !
Prévoir des goodies ! Beaucoup de goodies ! Les casquettes CGT à strass auraient certainement du succès ! Ainsi que les boules de pétanque gravées "réforme des retraites 2023". Des sweats à capuche "qu'ils viennent me chercher" ou le badge "J'y étais" avec un gros 49.3 en flammes... même que les fonds pourraient être versés aux caisses de grève.
Des repas 100% traditionnels et conviviaux devant le journal de 13h. Le café en terrasse ... devant un bon feu de poubelle réconfortant. Possible partenariat avec Trogneux !
Faire un musée national de la Grève où les touristes peuvent découvrir comment on a obtenu ce droit, la création des syndicats etc.
Faire le parc à thème "Macronieland" où tu peux lâcher un pognon de dingue dans le 49.3 infernal (un rollercoaster où quand t'en veux plus, bah t'en as encore !), Tu peux aussi faire un tour dans le train BRAV-M (c'est comme le train fantôme sauf qu'au lieu des monstres, t'as des mecs qui te menacent avec des matraques en mousse et des fumigènes. Non, pas des vrais lacrymos, on est pas des monstres !). Les enfants pourront jouer à la pêche aux milliards (Comme la pêche aux canards, mais avec des petits bonhommes avec des logos McKinsey et BlackRock gravés) ... et niveau staff, on pourra même récupérer en CDD les anciens élus Renaissance quand ils traverseront la rue pour trouver du boulot.
Non franchement ... pourquoi on s'inquiète ?
Je déconne hein ... mais imaginez quand même !
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a-h-87769877 · 6 months
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jinxxpal · 6 months
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raffaellopalandri · 1 year
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Book of the Day - Beyond Performance 2.0
Today’s Book of the Day is Beyond Performance 2.0, written by Scott Keller and Bill Schaninger in 2019 and published by John Wiley & Sons Inc. Scott Keller is a consultant, an author, and a Senior Partner in McKinsey’s Southern California office, leading their global CEO and Board Excellence service line. He studied as Mechanical Engineer and has been consulting companies on business strategy,…
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slidemarvels · 6 months
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This Halloween season, let Slide Marvels work its magic on your presentations! 🎃
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hellcatofthenorth76 · 6 months
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McKinsey: Last Week Tonight with John Oliver (HBO)
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mirrorontheworld · 11 months
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Selon nos informations, les juges qui enquêtent sur les comptes des campagnes 2017 et 2022 du président de la République s’intéressent aux « livrables » McKinsey « sur l’évolution du métier d’enseignant », payés par l’État en 2020 et dont des propositions figurent dans le dernier programme d’Emmanuel Macron.
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eelhound · 2 years
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"In Winners Take All, writer and former McKinsey analyst Anand Giridharadas describes what he calls 'MarketWorld,' which is:
'…an ascendant power elite that is defined by the concurrent drives to do well and do good, to change the world while also profiting from the status quo…these elites believe and promote the idea that social change should be pursued principally through the free market and voluntary action…that it should be supervised by the winners of capitalism and their allies, and not be antagonistic to their needs; and that the biggest beneficiaries of the status quo should play a leading role in the status quo’s reform…The MarketWorld problem-solver does not tend to hunt for perpetrators and is not interested in blame.'
I’ve seen this tendency in myself. It was harder for me to embrace a Left worldview because of the social ties I have with people who are perpetrators of the many harms inherent in our system. I have also seen this in my former colleagues, like a healthcare specialist who volunteered for numerous Democratic campaigns and strongly opposed single-payer healthcare. The definitive evidence he marshalled for why single-payer was a terrible idea was a Vox piece arguing that the system would only save money if doctors were paid less. Clearly, this outcome was more intolerable than 30 million Americans continuing to go without insurance. On his McKinsey [consulting] engagements, he works primarily with doctors and healthcare administrators, the people whose paychecks and jobs would be most negatively affected by a transition to a single-payer system. Their lives and livelihoods are far more salient than the millions of uninsured who exist only as numbers in spreadsheets. Any solution that requires redistribution of any wealth or power from the ruling class (the only class who can afford to hire McKinsey) is not even worth considering.
It is the same situation described by Tolstoy: 'I sit on a man’s back choking him and making him carry me, and yet assure myself and others that I am sorry for him and wish to lighten his load by all means possible… except by getting off his back.'"
- Anonymous, from "McKinsey & Company: Capital’s Willing Executioners." Current Affairs, 5 February 2019.
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visual-sculptors · 1 year
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The 5 C's of Consulting Success
The five C's in consulting are Context, Contacts, Collaboration, Creativity and Communication. Context includes understanding the operational and competitive environment.
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What are the 3 C's in consulting?
The 3 C's in consulting are communication, collaboration, and creativity. Communication is critical when consulting with a client or team in order to efficiently discuss the project parameters and outcomes. Collaboration among all parties is also important in order to work together towards achieving the desired result. Lastly, harnessing creativity helps to come up with innovative solutions that will lead to the best results for the project.
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jloisse · 2 years
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McKinsey impliqué dans la mort de plus de 500.000 américains dans la crise des opioïdes !
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greenfue · 1 year
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نمو كبير في سوق إعادة البيع للماركات الفاخرة عالميا.. سباق عالمي في التوجه نحو الاقتصاد الدائري
نمو كبير في سوق إعادة البيع للماركات الفاخرة عالميا.. سباق عالمي في التوجه نحو الاقتصاد الدائري
كتب مصطفى شعبان  سوق إعادة البيع للماركات الفاخرة عالميا أخذ في النمو، والمستهلكون يتزايدون يوما بعد يوم في هذا القطاع، وهناك سباق عالمي في التوجه نحو الاقتصاد الدائري، ودخل في السابق الشركات العالمية خاصة في مجالات الموضة والأزياء والأحذية والأكسسوارات والشنط. فالشركات العلمية أصبحت على يقين أن المستقبل لكل ما هو في صالح البيئة وأن القادم هو للأجيال الصاعدة المتحمسة والمتفاعلة بكل ما هو صحي…
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shreygoyal · 2 years
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McKinsey advised opioid makers to help increase sales despite growing public outcry over the opioid epidemic, as shown by documents from 2004 to 2019 released under the terms of the $573 million settlement that they reached in 2021.
(Source)
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deltaponline · 2 years
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