McKinsey & Company: Hard Lessons Learned in South Africa

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McKinsey & Company: Hard Lessons Learned in South Africa: Abstract

On 18 June 2019, the Gauteng High Court “set aside and declared unlawful all the decision-making processes through which Eskom had concluded [a] contract with McKinsey”. The contract in question had resulted from McKinsey South Africa’s turnaround proposal to the struggling electricity utility in February 2015. Although McKinsey SA had experienced difficulties with a Transnet contract in 2013, the organisation had decided that working with Eskom, its client since 2005, on this project was a risk worth taking. Subsequent events and the high court judgement meant that the partners at McKinsey SA had to assess the lessons learned from this project before embarking on further projects with South African state-owned entities (SOEs).