Extra Miles and Points - How Far Some McKinsey Consultants Will Go to Earn Them

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A previous post covered why airline miles and hotel points are so important to many McKinsey consultants.  In this post we'll go a bit deeper on the topic and look at the extent to which some current and former consultants will go to earn more of these miles and points.







There's no shortage of stories about McKinsey consultants going to great lengths to earn more miles or points.  Here are some examples:

Checking in and out of hotels every day

Some consultants - usually BAs - will check out of a Starwood property every morning and into another Starwood every evening (please see the previous post on why Starwood and SPG are so popular at McKinsey).  They do this to rack up more stays - SPG makes a distinction between nights and stays and occasionally run promotions that award one free night (at any Starwood property!) for every two or three stays.  If stays - not nights - are rewarded, it's in a participant's best interests to break up a multiple-night stay into multiple, single-night stays.  But if you check in and out of the same Starwood property, SPG will link them all together into one, longer stay.  However, that does not happen if you move from one Starwood property to another, even if you're just moving back and forth between two properties.  This is feasible because most larger US cities have more than one Starwood property, often within walking distance of each other, but it still means having to pack up and move every day.

Negotiating with hotels on behalf of the team

Consultants are usually lucrative passengers and guests - we book expensive, fully refundable airline tickets and bring entire teams (that spend a lot on room service and laundry) to hotels for months at a time.  Hotels will usually want a consulting team's business and have some latitude in offering benefits to encourage a McKinsey team to stay at their property.  A resourceful, proactive consultant (often a BA but as an EM I would do this to look out for my teams) can call hotels in advance of an engagement and negotiate benefits - usually in the form of bonus points - for their teams.  The more Starwood properties in a market, the better your BATNA and negotiating position.  This is usually appreciated by most current and former consultants who are trying to amass hotel points.

Developing "exchange rates" for problems or delays

Just as airlines and hotels want to attract consultants, they also have incentive to keep consultants happy.  When things go wrong, they're usually willing to give up some - for them, relatively inexpensive - miles or points to smooth things over.  One McKinsey colleague had developed a table of "exchange rates" for common problems and how many miles or points one should expect to receive as compensation for specific issues and problems.  For example, hotel laundry delivered late might equal 3,000 starwood points.  A flight delay due to mechanical failure equals a certain number of airline miles.

Booking sub-optimal flights and itineraries

It's usually in the best interest for a McKinsey consultant to concentrate their miles with one or two airlines.  As a result, consultants might book flights that a) leave at inconvenient times, b) include unnecessary connections, c) arrive at an airport that is not the closest to the destination, or d) cost more.  The Firm has rules (e.g., not being able to book a flight that costs $X more than the preferred carrier) that limit the extent to which cost can be an issue.  The consultant usually bears the cost of the other approaches in the form of lost sleep or less free time.  Because consultants usually have to be at the client site by a certain time, they have to leave earlier and/or spend more time traveling if they want those specific miles.  On the way back they have more flexibility, but it also means it will take longer to get home to friends, family, and sleep.

Driving longer distances and separation from the team

When consultants book flights to a sub-optimal location, it usually requires a longer drive to get to their destination - the client site, the team hotel, or home.  This also becomes an issue when booking preferred hotels.  Even if your destination city has a Starwood property, it might not be close to the client site.  Because teams work long hours at client sites, they often stay at a nearby hotel, but that might not be a Starwood property.  In both cases, it takes more time and isolates the consultant from their team, meaning less free time and potentially requiring more work getting caught up while everyone else is staying in touch at the team hotel or on the drive to and from the client site.

Why McKinsey Consultants Are Whores... For Hotel Points and Airline Miles

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There are many things about working at McKinsey that are challenging, including the travel.   Some of the upsides of travel include the opportunity to earn many airline miles and hotel points.  In this post I'll discuss the relationship current and former consultants have with these loyalty programs...

Caveat

As with many posts, these observations do not apply to all current or former McKinsey consultants.  But it does apply - to a lesser degree for some than others - to most of the McKinsey folks I've worked with.

What are airline miles and hotel points?

Airlines and hotels have programs to encourage loyalty among their passengers and guests.  Participants can earn miles for flights and points for hotel stays.  The miles are usually redeemed for free airline travel and the points exchanged for free hotel stays.  Participants can also earn various levels of status that entitle them to additional benefits like earning bonus miles and points or free upgrades (e.g., economy to first class seats on a flight, standard room to a suite in a hotel).  In addition, there are airline and hotel-affiliated credit cards that allow participants to earn additional miles or points for other purchases. 

Which programs are most popular?

In McKinsey's US locations, American's "Aadvantage Program" and United's "MileagePlus" are the most popular frequent flyer programs.  A few years ago McKinsey's preferred airline switched from American to United so some consultants adjusted their allegiances accordingly.  Generally, consultants can book whatever airline they prefer as long as it isn't significantly more expensive than the preferred airline option.

Popularity of frequent flyer programs also depends on which airlines serve a given McKinsey location.  For example, consultants in Atlanta or Seattle might prefer to amass Delta or Alaska Airlines miles, respectively.  Airlines also form partnerships or alliances (e.g., the Star Alliance includes United, US Air, and Air Canada) with each other, meaning you might be able to earn miles in your favorite program for flights on another partner airline.

For hotels, there's a clear favorite at McKinsey - the Starwood Preferred Guest or "SPG" program.  There are a few reasons for this:

1. Starwood properties can be found in many cities to which consultants have to travel on business
2. Starwood includes many great properties (e.g., St. Regis, W, Westin, Sheraton, Meridien) that are worth staying in for both work and vacation.
3. SPG often runs promotions for bonus points or free nights (e.g., one free night for every two stays)
4. The American Express Starwood credit card allows participants to earn bonus points when used to pay for Starwood hotel stays
5. SPG status allows participants to earn more points per dollar spent

Why do consultants care so much about miles and points?

Earning hotel points and airline miles can help offset the downsides of so much time spent on the road away from friends and family.  Turning all of that travel into free vacations can go a long way toward taking a break and recovering from the crazy lifestyle, compensate for poor work/life balance and keeping the peace with significant others (SOs).

I've also heard BAs speak of miles and points as valuable perks that are even seen as supplemental income.  Although consultants are well paid, but some, especially BAs, have passed up more lucrative opportunities to work at McKinsey.  So, some consultants consider miles, points, and the things for which they can be redeemed to be important perks that keep them happy.

Over the course of a single travel engagement, it's possible to earn enough airline miles and hotel points for a consultant and their SO to take a free vacation.  For example, their flights to Hawaii (with complimentary upgrades to first class, of course!) and a week at the beautiful (and normally quite expensive, on the order of $600+ per night) St. Regis in Princeville, Kauai can be "paid for" using miles and points.

In a future post, I'll discuss the great lengths to which some consultants will go to maximize the number of miles and points they earn.

Why is this important?

If you have current or former McKinsey consultants working for you, it can be helpful to remember how valuable miles and points might be to them.  If they have to travel for work, they might be appreciative if you can give them a little latitude in how they get there and where they stay.  It's especially worth giving them that freedom if it doesn't make much difference to you and/or they can do it in a cost-effective manner.  To the extent that you are able, let them choose their airlines and hotels and let them keep the miles and points that they earn.

One anecdote that highlights the importance of these perks comes from McKinsey's West Coast Office (WCO).  During the economic downturn, McKinsey, like most companies, had to do some belt-tightening to get through lean times.  That included changing policies and cutting back on a lot of perks.  As the economy improved some of those cuts were restored and announced at a WCO "town hall" meeting.  Out of a substantial list of changes, the only one that elicited an audible response from the audience - a loud cheer - was that consultants would once again be allowed to use their own credit cards (read:  SPG AmEx) rather than their corporate cards to pay for expenses including hotel rooms.  This means that consultants can once again use their personal SPG AmEx cards to pay for Starwood hotel stays, increasing the number of hotel points they can earn.  That change probably didn't deliver a huge financial benefit, but clearly impacted the morale of the consultants.

How the McKinsey Resume / CV Screening Process Works

McKinsey's success is built on its reputation and people.  To maintain a sufficient supply of the latter, every year McKinsey reviews thousands of resumes from the top undergrad and MBA programs around the world.  As a result, the Firm has gotten quite good at making a highly qualitative process more objective and consistent.  In this post I'll explain the resume review process...

DISPELLING MCKINSEY RESUME REVIEW MYTHS

There's a lot of conjecture from non-McKinsey consultants about the process the Firm uses to screen job applicants.  I'd like to dispel those myths by bringing some transparency to the process.  During my time at McKinsey I screened over a thousand resumes during the summer and full-time hiring cycles at undergrad, MBA, and APD sources (aka schools).  So, this article is based on first-hand experience and facts, not speculation or guesswork.

CAVEATS

I'll be describing the process as it's applied in several US office complexes.  Having reviewed resumes and participated in resume review meetings for several US office complexes, these observations are representative of how the process works in the US.  However, McKinsey is a global Firm with hundreds of locations - it's likely there might be some variation from office to office and location to location, even within the US.

It's also worth noting that this process might not be used in the "experienced hire" process.

TWO COMMON MCKINSEY RESUME SCREEN MYTHS

I find it interesting that the two McKinsey resume screen myths I see or hear most often polar opposites of one another.  On the one hand, some people seem to believe that there's a rigid, mindless algorithm that examines then accepts or rejects resumes.  On the other hand, other people believe that the process is completely subjective and determined by the whims and moods of someone in McKinsey HR. 

MYTH #1 - Resume-screening software

In this myth, there's some sort of automated McKinsey software that filters resumes based on keyword searches or similar algorithms.  This is absolutely incorrect.  Every resume is read by at least one McKinsey consultant and, because they have to score the resume - and often calibrate their scores with those of another consultant who is reviewing the same resumes - they actually have to read the resumes in some detail.

MYTH #2 - Subjective HR Reviewers

In this version, candidates' fates are determined by anonymous people in HR who apply highly subjective criteria to determine who passes and who doesn't.  The Firm tries to make this myth as incorrect as possible. 

Although resume screens are qualitative and, as a result, prone to subjectivity, McKinsey trains consultants to review resumes using objective criteria, standardized scales, and scoring rubrics to minimize the subjectivity of the process.  A typical batch consists of 50-60 resumes.  In my experience, our scores for most candidates will vary by less than 10% and very rarely (1 or 2 resumes per batch) vary enough for a candidate on the fence to make the decision to extend an interview invitation unclear.

THE PROCESS

STEP 1 - Applicants drop resumes

Each consulting season - fall for full-time hires and winter for summer internships - schools have deadlines for "dropping" or submitting resumes to McKinsey for consideration.  At some business schools, nearly half the class will drop resumes for McKinsey and other top management consulting programs.

STEP 2 - Assign resumes to reviewers

Once the Firm receives the resumes, they are assigned in batches to consultants for review.  Usually, pairs of consultants are assigned to each batch so they can score resumes independently and then compare results and calibrate.

STEP 3 - Read and score resumes

Resume reviewers read each resume and score them according to a standardized framework.  The dimensions and characteristics being sought during the resume screen are not mysteries and are clearly defined on the McKinsey website.  In addition, there are tips on how to do well on the McKinsey resume screen in a previous blog post.

Resumes are scored on several dimensions on a scale of 0-4.  There is a scoring rubric that clearly defines objective criteria and examples of what it takes to receive each score on each dimension (e.g., it takes X to receive a "3" on "Leadership")

STEP 4 - Resume reviewer pairs compare scores

Ideally, each resume reviewer will compare scores with their partner to confirm that they are well-calibrated.  If there is a significant difference it will be reconciled by the reviewers walking through the resume together and - using the scoring rubric as a guide - discuss why each score was given.

STEP 5 - Resume review meeting

Once the resume batches have been reviewed, scores are submitted to the recruiting team to be compiled and stack-ranked from the highest to lowest.  The reviewers then participate in a resume review meeting (often done via conference call) to determine which candidates should be invited to interview.  Candidates with the highest resume scores are "clear passes" and invited to interview, and those with the lowest are "clear turndowns" and not invited to interview.  Applying the 80/20 rule, most of the time is spent discussing the candidates in the middle of the pack. 

McKinsey is a Pie-Eating Contest and the Prize is More Pie

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This is one of my favorite phrases about life at McKinsey.  In this post I'll explain why "working at McKinsey is a pie-eating contest and the prize is more pie"...

How is McKinsey a pie-eating contest?

In this metaphor, the pie is work.  At McKinsey there's no shortage of pie - just like in a pie-eating contest, there will always be more pie than you could ever eat.  Consultants who can eat the most pie - be most productive and do the most work - usually get recognized with higher ratings, faster promotions, and more responsibilities... more pie! 

What does it mean for the prize to be more pie?

If you do more work at McKinsey and finish it faster, you'll be rewarded with even more work.  This isn't like a typical job where there's a fixed amount of work to do - in those cases, the sooner you finish your work, the sooner you get to go home. 

At McKinsey, the expectation is that if you wrap up your current workload, you'll find additional work to do.  Here are some ways this can manifest itself at the Firm...

1.  Keep pushing further

Consultants are never truly finished with their workstreams.  Even when you think you're finished, there's always more that can be done.  Exhibits can be cleaned up, pages can be wordsmithed, analyses can always be pushed further.  No matter how many pies you eat, there's always another one.

2.  Support other workstreams

Even if you get your workstream to a point where your McKinsey boss considers it finished, the team still has plenty of work that needs to get done.  If your work is wrapped up, t's likely that you'll be asked to pitch in on someone else's workstream.  If the person you're helping is really behind, in addition to doing some of their work, you might be asked to coach them - a situation that might continue even after your own plate fills back up.  Congratulations, you've won someone else's pie!

3.  Raising your hand

At McKinsey, consultants are expected to contribute to their Office/Location in addition to their regular client work.  That usually means things like participating in recruiting, leading training sessions, running social committees, creating knowledge documents, and working on client proposals.  They're important and can be fun, so it's worth finding one you can be passionate about and volunteer - it's also better to a) sign up for one you want before you b) get one you don't want thrust upon you.  But be aware that you'll be working on these things in your "free time" while you're still working on a client engagement.  That means you'll be entering a blueberry pie-eating contest while you're still in the middle of a banana cream pie-eating contest. 

And, if you do a really good job, you'll be rewarded with more pie!  Do a great job on recruiting?  You'll be asked to go to every interview cycle at your alma mater, participate in cultivation events (i.e., "sell" weekends), and be a buddy to offerees.  Help write a successful client proposal?  Congratulations - now you will be part of that Partner's "go to" team for project proposals and you might be asked for help by the engagement team since you're an expert on the proposal.

5 Traits of Client-Ready Decks (PowerPoint Presentations)

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Just as there are "client-ready" consultants, there are client-ready PowerPoint presentations.  In this post, I'll briefly cover what it means for a McKinsey deck to be client ready and 5 traits that client-ready decks share...

What does it mean to have a client-ready deck?

McKinsey consultants (see also the related post on client-ready consultants) create many PowerPoint pages and decks (presentations) but only a fraction of them ever end up in front of a client.  Sometimes it's by design - McKinsey teams prepare many decks that are only used for team problem solving or internal project management.  Others are made as part of the iterative process to get from the initial, ghost deck to the final, client-ready deck.

For a deck to be considered client-ready, the team must be confident that it will a) represent the Firm well and b) meet the high expectations of senior client executives who are often the same people paying the Firm's fees.

Five traits of client-ready decks

Decks that are deemed ready to be presented to clients typically exhibit these traits:

1.  Carefully crafted storyline

The storyline of a deck is its narrative arc.  If the purpose of a deck is to get a client from point A to point B, the storyline is the roadmap for that journey.  A good storyline takes into account the audience - where they're starting, where you want to take them, and what you have to show them to get them there.  It should also avoid or defuse any potential landmines.  One storyline might go through dozens of iterations over the course of weeks, reflecting many team problem-solving sessions and hundreds of hours of consultant, Partner, and client time.

2.  Effective pages

Each page of the deck should have a clear purpose and play a role in advancing the storyline.  The important elements, or key "takeaways" of each page should be clear and supported with exhibits and/or data.  If a page does not meet these criteria, it should be considered for removal or relocation into the Appendix.

3.  Clear exhibits

Regardless of their format - graphs, tables, and maps are some of the most common - exhibits should be easy to understand.  The best exhibits synthesize large amounts of data into simple figures that demonstrate and/or support crisp, valuable insights.

4.  Bulletproof analyses

Decks must always be fact-based - that often requires analyzing data to find the insights that support the key takeaways.  This can be challenging as client data is not always available, robust, or easy to analyze.  It is not uncommon for clients to be missing or unable to gather fundamental pieces of data.  Even when data can be found, it must often be "cleaned" to address various data quality issues before it can be used.  Sometimes it has to be adjusted to be comparable to industry standards or even benchmarked across departments within the same company.

Once the data is ready, the analysis is often complex and difficult.  There are countless opportunities for errors to be made in designing, creating, populating, and executing models.  The more complicated the model, the more chances for mistakes to be made.  These problems increase in likelihood if a model requires multiple people working on it, opening the door to hand off and version control issues.

Even the slightest error in any of these steps of the analysis can result in faulty data and insights that will damage the believability of the deck and credibility of the team and Firm.

5.  Proofread and polished

While a misspelled word or sloppily formatted table does not impact the quality of the analysis, it might cause a client to doubt the competence of the team and Firm.  Even minor mistakes can damage credibility, especially if they occur before the team has a chance to establish a track record with a client.  Also keep in mind that clients might keep using decks long after the engagement has ended - your work will continue representing the Firm, warts and all, long after the team has moved on.

6 Traits of Client-Ready McKinsey Consultants

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You might hear management consultants refer to a a person as "Client Ready" or not.  In this post, I'll briefly cover what that means and share 6 traits that client-ready consultants exhibit.  You can also check out the related post on what it means to have a client-ready deck (PowerPoint presentation)...

What does it mean to be a client-ready consultant?

At a high level, this is a simple answer - it means that someone is ready to be put in front of a client and, ideally, entrusted to work with them on their own..

McKinsey and other client service firms get paid a lot of money to serve their clients.  Although it might sometimes feel like it, clients aren't just paying for PowerPoint decks (see also the related post on client-ready decks).  They expect a firm to bring their best thinking, problem-solving, knowledge, and people to the engagement.  As a result, every consultant and interaction with them either builds or erodes the firm's and team's credibility with the client.  Therefore, even the most junior or least experienced member of the team must be client ready, make the right impression on the client, and represent the team and Firm well.

Six traits of client-ready consultants

Client-ready consultants inspire confidence in their capabilities and build credibility with clients.  Even the most junior consultants are expected to build strong working relationships with clients and are prepared to present to senior client executives.  They do this by consistently exhibiting the following traits:

1.  Professional

Always conduct yourself in a manner that is appropriate for a business environment, particularly at the executive level.  Examples include always being punctual for meetings, being unfailingly polite (especially Executive Assistants!), and prepared for meetings.  Sometimes what's considered appropriate will vary from client to client - or even within the client's organization - so tailor your approach accordingly

2.  Personable

Even though clients are paying for our best thinking and professionalism, that doesn't mean they want to work with dispassionate automatons.  There are all sorts of benefits that come with establishing personal connections with clients of all levels, including making the engagement a lot more fun for everyone.  It's a lot easier to do that if you're friendly, personable, interesting, and take a genuine interest in your clients.  In addition to making your consulting job easier - clients are more likely to go out of their way to help someone they like - you might make some great friendships that will continue long after the engagement is over.

3.  Poised

Because of the tremendous amount of work to be done, high expectations for quality, and limited time, consultants are always under pressure.  Client-ready consultants need to be unflappable under all that stress, especially in front of clients.  Whether scrambling to meet a deadline, late for a meeting when the printer runs out of toner, or meeting with the CEO for the first time, a consultant must come across as composed and self-assured.

4.  Polished

As much as we'd like to be judged purely on the merits of the work we do, the reality is that how we present ourselves matters - especially when making first impressions.  This includes always being appropriately dressed and well groomed.  Note that it doesn't always mean being well-dressed, but making sure your appearance is appropriate for the client and situation.  What is appropriate will differ depending on whether you're working with line employees at a mining client, middle management at a software client, and senior executives at a private equity firm.

5.  Intelligent

All of the previous items are about the sizzle, but problem-solving is the steak.  Ultimately, none of the rest matters if you can't deliver on this dimension.  Here are some ways you can demonstrate your intelligence to clients - the first ones are easier because they can be prepared in advance, edited, and fine-tuned prior to the client seeing them:

• Generate insightful analyses
• Send crisp, well-written, thoughtful emails
• Prepare for meetings so you can contribute perceptive answers (or questions) to problem-solving sessions
• Be articulate and choose your words carefully

6.  Detail-oriented

Management consulting engagements are expensive so clients have high expectations.  While they're primarily paying for impact on their business they expect high-quality execution across the board.  Clients often believe the adage that "how a person does one thing is how they do everything."  When an "i" is not dotted or a "t" is not crossed, it could cause a client to question how much attention to detail was paid to the more important aspects of the engagement.  Even minor mistakes can damage credibility, so it's important that client-ready consultants pay attention to the little things. This especially applies to client-ready decks.