McKinsey-Trillian debacle a case study for Harvard business students
London — An ill-fated deal struck by global consultancy McKinsey in SA has been used by Harvard Business School as a case study for students.
McKinsey had local management consultancy Trillian as a partner when working on a big contract to advise Eskom. The deal collapsed because of corruption allegations that have damaged McKinsey’s reputation.
Trillian was controlled at the time by the Gupta family, friends of former president Jacob Zuma. McKinsey denies it knowingly let funds from Eskom be diverted to a firm controlled by Zuma allies as a way to secure the contract.
The case study, dated January 7 2018, asks students at the elite business school in Boston, US to imagine they are a McKinsey employee deciding whether to partner with Trillian to win a contract with Eskom.
It explains that McKinsey could have a better chance of winning the contract if Trillian is given a percentage of the deal.
"Would you bring in Trillian for the proposal to Eskom? How would you come to your decision? What additional information would you request?" the case study asks.
One scribbled note on the paper says "blow the whistle". It is not clear whether a student or a staff member wrote this.
A spokesperson for McKinsey declined comment on the case study.
Jim Aisner, a spokesperson for Harvard Business School, said it was part of a course called: Africa Rising: Understanding Business, Entrepreneurship, and the Complexities of a Continent.
"The primary goal of this exercise was to place students in the protagonist role so that they could understand the complicated issues facing senior management in SA" Aisner said in an e-mailed response to questions.
The scenario highlights the attention the case has attracted in the US, where McKinsey is based.
McKinsey, the world’s largest management consultancy, said in 2017 it was "embarrassed" by errors it made in working at Eskom alongside Trillian, but denied it did anything illegal and said it would pay back its fee.