AIG's Benmosche takes charge
On Thursday it was announced that AIG fired McKinsey & Co. as an advisor for the insurer's restructuring. What a breath of fresh air, even in the morass of AIG's challenges. McKinsey is the ultimate crutch for a weak CEO and Board. Prada and Gucci for the insecure. They are immensely expensive and their brand is impeccable. Generally they do nothing except play provocateur and look ten years or more into the future to determine the "strategic landscape" and the "drivers of competitive advantage". Taking no responsibilty for the present, McKinsey is essentially above being held accountable.
AIG, of course, is living day to day, month to month, trying to salvage as many of the valuable parts of its franchise as it can, at least trying to get as much value as possible for parts they must sell to repay the government or even keep pace with the government's huge dividend and interest bill. Worrying about the insurance industry landscape out to 2020 is on the back burner for now.
It take a tough guy to go public with a dismissal of McKinsey. That firm's research capabilities are legendary and the degrees held up and down the firm are off the charts, all from the premier schools around the world. They are arrogant and condescending and they think that's what they've earned. They spread rumor and innuendo as much as any human beings. Kicking them out was the right thing to do. They were a total mismatch for AIG's problems as they are for most firms that hire them.
Only firms with a CEO, Board, and staff that can match wits with McKinsey would really benefit from an interaction with them and, with a huge amount of work and luck, Benmosche might be able to justify bringing them back a few years from now.
AIG, of course, is living day to day, month to month, trying to salvage as many of the valuable parts of its franchise as it can, at least trying to get as much value as possible for parts they must sell to repay the government or even keep pace with the government's huge dividend and interest bill. Worrying about the insurance industry landscape out to 2020 is on the back burner for now.
It take a tough guy to go public with a dismissal of McKinsey. That firm's research capabilities are legendary and the degrees held up and down the firm are off the charts, all from the premier schools around the world. They are arrogant and condescending and they think that's what they've earned. They spread rumor and innuendo as much as any human beings. Kicking them out was the right thing to do. They were a total mismatch for AIG's problems as they are for most firms that hire them.
Only firms with a CEO, Board, and staff that can match wits with McKinsey would really benefit from an interaction with them and, with a huge amount of work and luck, Benmosche might be able to justify bringing them back a few years from now.
posted by John Borden at 4:33 PM
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