God I love Twitter. I really do. There is a certain chaos that just thrills me. So there I was, minding my own business, when someone named Dubai At Night said that McKinsey was responsible for the collapse of Enron. Of course, I had to speak up. I said that “They approved it bc it was legal. The trading models had nothing to do with the collapse of Enron. McKinsey was clean.”
And at the slightest whiff of push-back, this person went all defensive and crazy:
The whole thing is indicative of the ego problem on Twitter specifically and the net at large. You think you have a monopoly on info, and you don’t. And it is unwise to tangle with people who know more than you do.
To address the issue of McKinsey specifically, McKinsey might have been involved in analyzing trading strategies, but I cannot see McKinsey saying anything about how Enron handled its financial reporting. McKinsey consultants are not accountants, and few have accounting backgrounds.
The other problem with attacking McKinsey is that McKinsey consultants offer advice and the analysis behind their advice. They are not attorneys nor accountants. If a client likes McKinsey’s analysis and advice, it is still the responsibility of the company to vet the ideas with their attorneys and CPAs. McKinsey consultants do not have the kind of liability that those other professionals have — this is mostly good because the point of having consultants around is for out-of-the-box thinking.
So even without addressing the central thesis of this person’s tweets, I can discount them because he doesn’t seem to understand the role of McKinsey. And I would bet anyone ten thousand dollars that he did not write any such “report” on behalf of McKinsey for Enron Corporation.