McKinsey splits chair, shrinks board

McKinsey just slashed its board from 30 to 12 and named a new chair, Andrew Pickersgill, as pressure mounts over its role in opioid litigation and past scandals. The firm says the move will mean tougher oversight and faster governance, especially as a major Canadian opioid class action advances. The stakes: can McKinsey regain trust with stricter controls while still winning high-stakes deals in finance and government?

But here’s the catch: as clients push for “skin in the game” on AI projects, firms like BCG and Accenture are ramping up risk-based pricing, with McKinsey selectively following suit. That means more fees tied to actual outcomes, not just hours billed—forcing partners to absorb more financial risk and cash swings. Internally, AI is streamlining work, but faster delivery could mean clients expect lower prices, squeezing margins even as the board tightens the reins.

McKinsey’s acquisition of PriceMetrix, a Toronto wealth analytics firm, aims to anchor outcome-based contracts in hard data and scale repeatable solutions for brokerages. Meanwhile, new numbers from the Quantum Technology Monitor show a wave of investment and adoption in Europe and private markets. Featuring reporting from the Wall Street Journal, Business Insider, and Management Today.

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