001

Table of Contents
 
Title Page
Copyright Page
Dedication
Foreword
Acknowledgments
 
PART I - Translating a Vision into Reality
 
CHAPTER 1 - Marvin Bower
CHAPTER 2 - The Vision
 
Marvin Bower Meets James O. McKinsey
Marvin and His Partners Buy McKinsey & Co.
 
CHAPTER 3 - The Profession and the Institution
 
The Profession: Management Consulting
The Institution: McKinsey & Co.
 
CHAPTER 4 - Defining Moments of Leadership and Influence
 
One Firm Identity Nationally: 1939 to 1945
MBA Recruiting: 1953
Launching of the McKinsey Foundation for Management Research and the Columbia ...
Incorporation—1956
Going Global with One-Firm Identity—1959
Not Going Public: Selling Stock To Partners—1966
Insisting on Succession—1967
Objecting to a Joint Venture with DLJ—1969
 
PART II - A Leader’s Leader
CHAPTER 5 - The Bower Reach
CHAPTER 6 - Inspiring Organizational Courage
 
Royal Dutch Shell, 1956: Challenging the Organizational Heritage of an ...
Price Waterhouse, 1979: Consulting to the Consultants
Harvard, 1979: Making the Case for the Case Method
 
CHAPTER 7 - Educating a Generation of Leaders
 
Harvey Golub
Gary MacDougal
David Ogilvy
Don Gogel
 
Author’s Note
APPENDIX A - Timeline
APPENDIX B - Brief Biography
APPENDIX C - McKinsey & Co. Partners’ Conference, 1964
Notes
List of Interviewees
Index

001

To the memory of Marvin Bower

Foreword
Marvin Bower was a great leader and a great teacher. He did not believe leadership could be taught, but he did believe it could be learned. I had the opportunity to observe his deep personal influence on legions of business-people and colleagues one by one. For that was his way. One by one.
What I learned from Marvin Bower I brought to Harvard when I led the business school. It was very much about the need to invest in people and ideas—to become an intellectual venture capitalist. It was about creating an environment and a community that is so vital, so rich and fertile, and humane, that each of us will end up far better off than if we selfishly pursued our own interests. As Marvin would say, “If people are working at the things that really interest them, they are going to perform the best, make the greatest contribution, be the best family. . . .”
When Marvin joined McKinsey in 1933, it wasn’t clear what was going to happen in the profession of management consulting. Business is not like science. Experiments cannot be conducted in 48 hours, or even in five years. Marvin created an industry when he defined the profession and identity of McKinsey in the way he did, and then he recreated it when he had the insight and courage to hire young people from Harvard and other universities and have them work with business leaders. He demonstrated that it is not necessary to send in a retired CEO to advise senior executives: Young, highly intelligent, and well-trained young men and women of great integrity can get the job done, and do it very effectively. That was a huge leap.
In January 2003, we lost a great teacher and a pioneer. Marvin’s ideas were founded in basic human attributes of respect for others as well as promotion of self-esteem and courage. What made him a pioneer was that he took basic values into the business world—a fairly novel approach—to help leaders create value-based compasses for their own leadership. He valued the imagination of youth and understood the power of new ideas. He had passionate convictions and he cared deeply about his “students.” He never stopped innovating, learning, or teaching.
As with all great teachers, his teaching continues far beyond his 99½ years of life. Each of Marvin’s students is living some of those lessons, telling “Marvin stories,” and teaching others. I, for one, am persuaded that his story deserves a full telling. His ideas and insights and human values are as applicable today as they were on the day he was born, a century ago. Time has shown how well they work.
 
—John H. McArthur
Dean of the Harvard
Business School,
1980-1995

Acknowledgments
In the two years this book has been in the works, the list of people to whom I am indebted for telling me their stories and giving me their encouragement, insight, and criticism has grown to unmanageable proportions. I hope I will be excused for singling out only a few of the many whom I have called most frequently for help, and for failing to name many others who have aided me.
 
To the people who connected me to Marvin:
My father, who introduced me to the myth and the man.
Steve Walleck, who fueled this book by taking the time to write his stories down, as well as Dietmar Meyersiek, and Fred Gluck, who all provided me the opportunity to work with them and Marvin at McKinsey.
 
To the people who helped me in this endeavor:
Sue Lehman, who said go for it and reconnected me to McKinsey. Rajat Gupta, for opening the McKinsey files to me, and Bill Price, for being my escort, librarian, and traveling companion into the McKinsey world a decade after I had left it.
 
To everyone I interviewed, my thanks for your time, your enthusiasm, and your spirit. In particular I would like to express my appreciation to six individuals:
Warren Cannon, who told me it better be good, and when it wasn’t, told me it wasn’t and then had the patience to listen to me read it to him front to back.
Quincy Hunsicker, who gave me hour upon hour of his vacation time, just because he cared.
Jon Katzenbach, who took time to follow up his interviews with notes and many phone calls, always sharing his strong sense of motivation and pride in his association with Marvin.
Albert Gordon, who gave me invaluable insights into Marvin’s enormously influential relationships with Harvard and its business school, was unbelievably precise in his recall of details from 30 years ago, and read Marvin’s bio more thoroughly than I believe he read his own.
Mac Stewart, for just being Mac.
Ron Daniel, who never stopped giving me ideas, contributions, and corrections, as Marvin would have done.
 
I also offer my thanks to the following, who did so much to make writing this book possible:
Dick Bower, who encouraged me and embraced the effort, and Jim Bower, who graciously tolerated the intrusions into his life and gave me unique insights into his father.
Joan Wilson, who worked with me in the middle of many nights on many words and many drafts. Jim Wade and Paige Siempelkamp, who read, challenged, and made suggestions to help make the book better. Sara Roche, who long ago taught me the value of an editor and never ceases to amaze me.
Mark McClusky, Ron Blumer, and Kevin McHugh, who read and encouraged me when I was in doubt.
Brande Defilippis, Amelia O’Malley, Stephanie Nelson, and Kate Handley, who took fabulous care of Marvin in the last years of his life.
Maggie Neal, Marvin’s assistant, and Joan Wallace, Marvin and Cleo’s housekeeper, who never let me go.
Juliette “Lilita” Dively, Marvin and Helen’s longtime friend, who had endless George and Marvin stories and always made me laugh at life.
Howard and Susan Kaminsky, my neighbors, who heard my head hitting the wall and made sure that Marvin’s story got told. Alice Fried Martell, my agent, who believed in the book.
Ellen Harvey, who not only typed notes and draft after draft cheerfully and skillfully, but did fact finding, checked accuracy, and made suggestions.
Alvin and Violet, who put up with and supported a crazier and more frantic schedule than usual, and got involved in the effort—Alvin, who regularly asked me how the book was going, and Violet, who kept requesting to come with me to visit Marvin and recently explained to me that the fifth-grade newspaper was failing because it had too much hierarchy and people weren’t having fun.
Steven, who never complained that I wouldn’t take a commercial mind-set to the effort and kept telling me it was good, even when it wasn’t. He offered valuable and perceptive suggestions as always.
I relieve all of these people of responsibility for what I have written; but I cannot absolve them of responsibility for providing the sources of inspiration from which the book was drawn.
Finally, my mother, for giving me courage—for teaching me not to let fear or habits ever stand in the way of doing something I believe is important.

PART I
Translating a Vision into Reality
Ideas are not enough. They do not last. Something practical must be done with them.
—Marvin Bower, 20011

CHAPTER 1
Marvin Bower
1903—Harvard University had no business school. The New York Times cost one cent. Women could vote in 2 of the 45 states. The Wright brothers made their first flight. Thomas A. Edison’s light bulb was already 24 years old.
 
2003—9,000 applicants competed for 900 places at the Harvard Business School. The New York Times cost $1. The majority of registered voters were women in 42 of the 50 states. British Air decommissioned the first supersonic commercial airplane, the Concorde, after 24 years of active use. The light bulb, after 124 years, was fundamentally unchanged.
 
 
 
Born in 1903, Marvin Bower lived in one of the few houses in this country that had electric light. When Marvin died in Florida almost 100 years later, he had become to the world of business and management what Thomas Edison was to technology. Both men were elected to the Business Hall of Fame. When notified of the honor being conferred on him, Bower said, “It must be a mistake. I’m not a businessman. I am a professional.”1
His profession was one that he virtually invented: top management consulting. As the person who transformed McKinsey & Co. from a nearly defunct accounting and engineering firm into a preeminent adviser to senior executives throughout business and, on occasion, government, his term of service was a remarkable 59 years, from 1933 to formal retirement in 1992 at the age of 89.
What distinguished Marvin Bower was his dedication to values and his personal integrity. As John Byrne noted in an article in Business Week after Marvin’s death in January 2003:
Bower was McKinsey’s high priest, the man who made the partnership the gold standard in its industry.... He strongly believed that, like the best doctors and lawyers, consultants should always put the interests of their clients first, conduct themselves ethically at all times, and always tell clients the truth—rather than what they wanted to hear.2
Bower’s ethical sense and values can be traced directly to his early years. The firstborn child of Carlotta and William Bower, Marvin Bower grew up in a family of modest means in Cleveland, Ohio. While the Bowers were not poor, they valued integrity and respect over money. Two years after Marvin’s birth, his brother, Bill, was born.
The Bower family’s emphasis on learning was a major element of Marvin’s childhood. Required reading included stories and poetry, with William Bower keeping track of the books Marvin and his brother read. Marvin read every Mark Twain story twice; as he completed one, he would initial it.
His father was the ideal role model because his work on complex matters of land title transfers had both intellectual and practical hands-on aspects. It involved both technology and law, and required business acumen and very high ethical standards. William achieved national recognition in his field, just as his son would in later years. William Bower regularly took Marvin and his brother on tours of different kinds of industrial plants in Cleveland so they could experience firsthand what each plant was like. Marvin remembered these plant tours as fun and absolutely special because his father sometimes even took off a day from work to tour a plant with Marvin and Bill.3 It is a fair guess that Marvin’s desire to learn something useful and important from any and every experience was inspired by his father. As they would leave each plant, his father would ask, “What did you learn?”
While ostensibly a conservative midwestern family, the Bowers did not emulate the patriarchal structure typical of the time. More democratic in his approach, William Bower sought the opinion of all family members when it came to important decisions. Marvin clearly remembered being included in the discussion when his family was considering a move to the other side of Cleveland. In fact, the discussion itself overshadowed Marvin’s memories of the actual move. As Marvin recalled, “[It was] remarkable [that my father] continued to involve his sons in family decisions. Of course, my input did not necessarily influence the family decision—I can’t even remember what I said—but I did speak up on that and other occasions when I was invited to participate.”4 Such events would have been Marvin’s first introduction to a non-hierarchical management structure.
Marvin demonstrated his independent way of thinking early on. In high school he met Helen McLaughlin, the woman who would become his wife. He recalled that his father did not approve of his going steady with Helen: “Dad and I had a real struggle until he learned that I would not give in about going steady.”5 His memories of that time also included an influential English teacher, editing a school newspaper, and holding down a wide variety of summer jobs.
Laura Edwards was Marvin Bower’s English teacher in high school. Even at the age of 99, Marvin continued to retain strong memories of her and the effect she had on him and Helen:
Laura Edwards made learning fun. We came to like her, and soon she asked that we all get on a first-name basis.... No other teacher did that. In a funny way, simply doing that made us feel closer to Laura. . . . She lectured us all in a pleasant manner about getting good grades so we could get into colleges, as we all intended to do. I think we all took it to heart. She was an outstanding teacher and influenced Helen to go into teaching. Helen and I visited her when we returned to Cleveland after moving away, and wrote to her over many years.6
Marvin adopted this practice of dealing with people on a first-name basis and made it an integral part of his relationships with others, colleagues and clients alike. He was known to everybody simply as Marvin, and if someone called him Mr. Bower he would correct him or her.
His ability to communicate clearly and effectively was evident in his high school years, when he launched a school newspaper entitled Home Brew.7 The school administration did not like the title (this was during Prohibition), but the first-rate quality of the reporting convinced them to allow the name chosen by Marvin, providing him with an early lesson in how powerful good communication skills could be.
Each summer Marvin would work at jobs obtained with his father’s help. He worked as a surveyor’s helper, an ice deliverer, a factory worker, and a Boy Scout camp counselor during World War I when there was a shortage of help. As Marvin recalled, “It was a good experience. I had some real responsibility and I had excellent teachers, so I learned a great deal [despite being only 15 years old]. I collected a tidy sum of money and Father taught me how to save.”8 In years to come, Marvin Bower would prove to be frugal not only with his own money but with the money of clients as well.
An industrious young man, he was also adventurous. One summer, he and a friend, John Hamilton, set out to take a bike trip to Buffalo and back.9 They thought it would be good training for football. They rapidly found the trip boring—more hills and mosquitoes than expected. After about three days of boredom, they grabbed onto a slow-moving truck. The truck driver did not know they had hitched on and began going faster and faster. Marvin and John let go and smashed into the pavement, fortunately without injuring themselves. A few days later, they reached Erie, Pennsylvania and turned around. The next summer the tenacious Marvin and John again set out for Buffalo, this time using William Bower’s outboard motor on a rowboat they had built. A storm set in over Lake Erie, the motor died, and Marvin and John were washed up on an island. They managed to swim to the mainland, call home, and alert the Coast Guard. That ended the boating adventure for the two high school students. The following year, still set on visiting Buffalo, Marvin came up with a more practical approach: He asked his father if they could go to Buffalo for their summer vacation.
After high school, Marvin Bower attended Brown from 1921 through 1925 at his grandfather’s suggestion. When Marvin reflected on his time at Brown, he mentioned one of the few regrets in his life: “I isolated myself in my fraternity too much. I didn’t take advantage and get to know the full campus of people.”10 At Brown he met Malcolm Smith, who became a close friend for life, and studied philosophy and economics, the latter being a relatively new academic field at the time.
Two of Marvin’s college professors made a lasting impression on him: One was an economics professor named Patton who used the outstanding text by Marshall to teach principles of economics so they could be remembered. The other was the psychology professor who was very good in dealing with people, and from whom he learned a lot about listening and people.11
Following Brown, on the advice of his father, Marvin went to Harvard Law School, while his friend Malcolm Smith went on to Harvard Business School. Marvin recalled:
It wasn’t hard to get in . . . I had an adequate but undistinguished record scholastically, but one didn’t have to have top grades to get into Harvard Law in those days. The big problem at Harvard Law at that time was staying in, because they flunked people out.12
Marvin was able to self-fund his law school education—he had saved earnings from his many summer jobs, and by 1925 he had made enough successful investments in the stock market to pay for his schooling.13 Almost everyone made money in the stock market in the 1920s, but it was very unusual for a 22-year-old to have been such a careful investor.
For four summers, starting in 1925, Marvin worked for the Cleveland law firm of Thompson, Hine and Flory (TH&F).14 During the first summer, his assignment was to collect debts for clients of the firm, principally wholesale hardware companies in Cleveland. First the clients’ salesmen tried to get the retailers to pay up, then the wholesalers wrote letters to the retailers; if this proved unsuccessful, they turned the bad debts over to TH&F. When Marvin went to see the retailers—“dunning” them, it was called—he found he had more punch in person than through a letter: His style was so effective that he could persuade many of the retailers to pay up. TH&F continued to use him in that role for the next three summers.
In 1927, in the summer before Marvin’s last year at law school, he married his longtime sweetheart, Helen.15 Over 70 years later, Marvin still remembered the details of that day—what it cost to rent an awning for the church, the problems of renting a formal suit, the dress Helen was wearing, and of course his friends who attended. The Cleveland News coverage singled it out as the “Wedding Event of the Week.”16
Their honeymoon was by car—a “new” (secondhand) car.17 In typical Marvin fashion, this trip was going to be an adventure, and there was no detailed itinerary. The couple started out late, ending up in Erie the first night. (There were no interstate highways back then, although most of the roads in highly populated areas had some sort of paving.) They had planned to tour Nova Scotia, but instead meandered around, visited many interesting places, and met a variety of people. After two weeks, they arrived in Cambridge, Massachusetts, just in time for Marvin to go back to school.
When he finished law school, Marvin was determined to work for a firm he knew he could be proud of. He targeted Jones, Day, Reavis & Pogue, a highly respected Cleveland law firm. As he told the story, he had not done well enough in law school for Jones, Day to make him an offer, so he decided to go first to the then fledgling Harvard Business School to strengthen his record. His friend Malcolm Smith had found business thoroughly absorbing and was convinced that business was more creative than law.
Once he entered business school in 1928, Marvin confirmed what he had already suspected—that he really enjoyed business. A member of The Harvard Business Review, he was particularly interested in marketing, statistics, finance, and public utility management.
While Marvin was in business school, Helen worked as a teacher (ultimately becoming a principal in Medfield, Massachusetts) to cover their living expenses, with schooling paid for by their stock market earnings. In the summer between his two business school years, Marvin worked for the law firm of Davis Polk in New York, staying in Malcolm Smith’s apartment in Bronxville while Malcolm was away. Marvin’s strategy paid off. After graduating from the business school in 1930, he joined Jones, Day in their corporate law practice.
In 1933, after three years with Jones, Day, Marvin left the firm, plunging headfirst into the business world after he consulted his friend George Dively, a Harvard Business School classmate of Malcolm Smith and a fellow Clevelander, who agreed that such a move was wise. Marvin joined what was then James O. McKinsey’s accounting and engineering firm. Six years later he bought it, and oversaw its transformation into the premier firm in a new profession—management consulting.
Marvin Bower’s foray into the business world would have far-reaching effects on business management throughout the world. He successfully built an eminent institution—and through it a profession—and simultaneously influenced thousands of leaders. His professional life was marked by his commitment to people, his caring about the success of client institutions and promulgation of important ideas, and his absolute integrity. During his almost 100-year lifetime, business went from a second-class profession (for those who even deigned to consider it as a profession) to the engine driving a global economy. Throughout this transition, Marvin was there, anticipating and envisioning the future and recognizing and serving the needs of senior business executives who were faced with huge challenges in a quickly changing world.
As he moved into consulting, Marvin had the opportunity to work with and advise many of the leaders of companies who would lead the charge into less hierarchical structures: Alfred Sloan, chairman of General Motors; Charles Mortimer, chairman of General Foods; Crawford Greenwalt, chairman of DuPont; Ralph Cordiner, CEO of General Electric; John Loudon, chairman of Royal Dutch Shell; Thomas J. Watson Jr., chairman of IBM; and even President Dwight D. Eisenhower, who, with Marvin’s help, dramatically reduced the size of the White House staff and gave his key people an unusual degree of autonomy.18 At that time, no Republican had been in the White House for 20 years. The Republican National Committee felt that a complete examination of staff functions was necessary, so Eisenhower did something unprecedented: He called in an “outsider” from management consulting to study the problems he and his staff members would encounter as his new administration took over. Eisenhower’s decision to bring in Marvin’s McKinsey team reflected the esteem in which Marvin was held by business leaders to whom the president turned for advice. By the 1950s, Marvin had firmly established his position as a professional who represented the gold standard in consulting—someone who merited unreserved trust and respect for his dedication to the needs of McKinsey clients. (See Figure 1.1.)
Marvin never believed in making money just for the sake of making money to keep score. His commitment to his clients, his partners, and his values was exceptional. He believed that a great service institution was built not only on skills and experience, but most importantly on the behavior and conduct of its people. He was well ahead of his and our time. In 1935, as a two-year associate, he wrote a note to James O. McKinsey stating that he did not believe consulting and accounting could be performed by the same firm without posing a conflict of interest.19 In the late 1950s and 1960s, Marvin sacrificed a significant increase in personal wealth by selling his shares to his partners at book value when other service firms were going public and their partners taking a lucrative payday. He did not believe that a service firm could consistently place its clients’ interests first if it were a public firm also answering to shareholders. Marvin decided that in order for the firm to grow and survive, ownership should be broad. Because of his adherence to high standards, he was a model for four generations of leaders. In addition to his one-on-one working relationship with senior managers, he used his superb communication skills to reach out to managers throughout the world.
FIGURE 1.1 SURVEY HELPED EISENHOWER TO FILL U.S. JOBS (The New York Times, January 1, 1953 © The New York Times Company)
002
In 1966, Marvin wrote his first book, The Will to Manage, in which he discussed the practical application of his many revolutionary ideas for helping management exercise meaningful leadership in a changing world. In 1975, a letter from the book’s publisher, McGraw-Hill, informed him that The Will to Manage was one of the best selling business books the firm had ever published.20 In 2002, the book was cited as one of the 100 most important business books ever written in the reference book Business: The Ultimate Resource.21
Marvin’s unwavering commitment to enhancing the welfare of business and the world in general included his involvement in a variety of business and community services. In 1955, he agreed to be president of the Joint Council on Economic Education. Marvin believed that the U.S. school system, including colleges, was woefully inadequate when it came to teaching economics, and that every citizen needed to have some understanding of economics. The council, founded six years earlier, provided state-of-the-art economic education through state councils and university-based centers. Marvin’s impact in this role was not soon forgotten: Lou Gerstner, who assumed the council’s presidency three terms later, was continually asked, “How’s Marvin doing?”22
Marvin was also an active adviser to the Harvard Business School and was president and board chairman of the Harvard Business School alumni association. His Harvard-related services included close associations with five of the school’s deans, spanning a 50-year period. Marvin provided advice to Dean Donald K. David on setting up a joint program with the law school. For Dean Stanley F. Teele, who had been an HBS classmate, Marvin was an informal adviser. For Dean George Baker, Marvin studied the school’s organization. For Dean Lawrence Fouraker, Marvin served on the advisory board. For Dean John McArthur, Marvin was a key adviser and counselor. In addition, Marvin was quite active on the board of Case Western Reserve, and was one of the leaders in merging Case and Western Reserve into a single institution.
Marvin also felt he had an obligation to help improve education in the United States at the local level. While a member of the Bronxville school board, he decided that it was important for an outsider to challenge some long-established school practices.23 Marvin and Helen established an organization in Bronxville with the mission of educating young people on the dangers of drugs—a pioneering version of the now widespread Drug Abuse Resistance Education (DARE) program. Marvin also encouraged others to give back to their larger and smaller communities. He was active in and supportive of the Volunteer Consulting Group, an organization of consultants providing pro bono help to nonprofit organizations. Finally, in his seventies, Marvin became an elder at the Bronxville Reformed Church.24
Marvin and Helen had three sons: Peter, born while they were still in Boston; Richard, born in Marvin’s first year with McKinsey & Co.; and James, born three years later. While his sons were growing up, much of Marvin Bower’s time was consumed by McKinsey & Co. Perhaps that contributed to his particular intensity when he did focus on his family. For example, when it came time to plan the family summer vacation, Marvin would ask one of his sons what he wanted to do. When Jim answered, “a trip to the Grand Canyon,” that is what they did, donkey riding through the canyon.25 When Dick hot-wired the family Cadillac, Marvin recognized the yen for adventure, perhaps recalling his own youthful mishaps in his quest to reach Buffalo, and grounded his son for two weeks. And Marvin was nothing if not loyal: After Peter joined Campbell’s Soup in 1956, Marvin never touched a competitor’s soup.
Marvin had six grandchildren and nine great-grandchildren. His grandchildren remember a wonderful grandfather who carried a dollhouse home on the train for Christmas, enjoyed watching The Munsters with them, and was an inspiration for their work and their lives, always sending them articles he thought might interest them.
Helen died in 1985 at the age of 81. As Marvin wrote to his family following her death:
She respected everyone.... Perhaps you can gain some meaning by understanding better the qualities that Helen had—from which you benefit by genes and blood or just from example. The large number of letters I received (perhaps 250) were a great tribute to her, and many were quite specific in describing her qualities from which you have benefited and still can benefit.... Let me share [one in particular] with you. Years ago when I was chairman of the Joint Council on Economic Education, the president [of the council] and I went to Washington with our wives. He writes:
“My most memorable recollection of Helen stamped her as a rare person and one I was privileged to know. You will recall one of our Annual Meetings in Washington when the students marched on the White House. Helen and Lois left the hotel and marched along with the students. Helen’s response to ‘why’ was ‘my son was in the parade.’ Courage and forcefulness went along with her protectiveness for her family. She portrayed for me the model of American womanhood.”26
Marvin continued: “Clearly you are all loved and have inherited from her, in one way or another, outstanding qualities and have high standards to live up to. It’s hard to imagine a better role model. We share a sorrow we will never get completely over. But Helen would want us all to adjust to it in the spirit she would bring to that task.”
In 1989, Marvin married Cleo Stewart, a neighbor in Bronxville and a longtime family friend. Together they moved to Delray Beach, Florida. In 2001, Cleo died on Marvin’s 98th birthday, but not before she had set him up with round-the-clock care and a project—writing his memoirs.
As Marvin’s 99th birthday was approaching, his son Dick called me to say that he felt it was important that Marvin have a quiet birthday dinner with a few family members. Two days later, Marvin’s secretary called to invite 21 people to the 99th birthday party Marvin was throwing for himself. It was quite a party. Attendees included Fran Allen, the widow of Jim Allen (from Booz•Allen & Hamilton); Juliette Dively, George Dively’s widow; Jack Bennington, the inventor of the Bennington electrical joint, and Marvin’s Sunday breakfast partner; Mac Stewart; Suzanne and Bill Bower, Marvin’s great niece and nephew; friends from McKinsey; and Marvin’s son Dick and his wife Neely. At the age of 99, Marvin continued to be in charge of his life: He was going to celebrate what turned out to be his last birthday in the manner he wanted.
Looking back on Marvin’s long life, a quote from Thomas A. Edison seems appropriate:
“I am long on ideas but short on time. I expect to live only about a hundred years.”

CHAPTER 2
The Vision
Man is a problem-solving, skill-using, social animal. Once he has satisfied his hunger, two main types of experiences are significant to him. One of the deepest needs is to apply his skills, wherever they may be, to challenging tasks—to feel the exhilaration of the well-struck ball or the well-solved problem. The other need is to find meaningful and warm relations with a few other human beings—to love and be loved, to share experience, to respect and be respected, to work in common tasks.
—Herbert Simon, 19651
 
 
 
Marvin Bower built and led the management consulting firm of McKinsey & Co. from a staff of 18 to a sustainable firm of over 500 consultants at the time he stepped aside as managing partner in 1967, and 2,500 by the time of his retirement in 1992.2 Over these same years, management consulting as a distinct profession grew from a handful of pioneers to a wide spectrum of firms employing over 500,000 people with an aggregate revenue in the billions of dollars. During this same period, Marvin Bower boldly took on powerful individuals, such as Derek Bok, president of Harvard, over the Harvard Business School’s mission; and Royal Little, president of Colgate, over the necessity to listen to the company’s employees. What enabled Marvin’s professional success, and the financial success of his firm, was an undeterrable will to lead coupled with a base of business values, strong leadership skills, and unemotional, absolute logic.
Marvin Bower’s vision of and passion for what he later termed management consulting began during his career as a lawyer between 1930 and 1933 at Jones, Day, Reavis & Pogue in Cleveland. In 1930, the firm found its practice had largely turned to the cleanup of Depression-ravaged companies. Having done the legal work related to the issuing of industrial bonds by its banking clients, the firm inherited the chore of untangling the obligations of defaulters. Saddled with de facto company ownership through bondholders’ and creditors’ committees, the bankers called upon Jones, Day to help reorganize these companies, or at least wring some value out of the remnants.
Having much more to do with business management than law, these assignments were outside the usual range of a law firm’s work. The 27-year-old Marvin Bower was among the first to hold both a master’s degree in business and a law degree from Harvard, so the law firm put him in charge of these cleanup assignments.
Marvin’s business degree paid off for both him and his employer. Over the next three years, he served as secretary to 11 bondholders’ committees, including those of Thompson Products, Inc. (later TRW), Midland Steel Products Company, Otis & Company, and the Studebaker Company.3 The committees took over the power of defaulting companies’ boards of directors, and Marvin’s role as secretary gave him considerable power.
In this capacity, Marvin investigated potential earning power and suggested recapitalization structures to the bankers and investment bankers. He typically began his search by interviewing the chief executive of the failed company, and then followed up by talking with any other staff members who might have insight into the causes of failure and the company’s ability to recover from disaster. As amateurish and superficial as he later considered this early work, it nevertheless produced meaningful results. The fundamental problem, Marvin learned, was not that the presidents of the failed companies were stupid; in fact, all 11 of them were very smart men. The problem was that they lacked the information necessary for informed decisions.
From his front-row view of 11 business tragedies, Marvin was convinced that the chief executives had been shielded from information that could have saved them. He firmly believed that had the right anecdotes and data flowed to the top and been properly analyzed, 10 of the 11 companies would still have been operating and healthy despite the Depression.
The culprit, Marvin believed, was deference to hierarchy. Employees simply didn’t dare tell the boss what was really going on. The isolation of the CEO, and Marvin’s anger at its disastrous results, kept Marvin and Helen up many nights talking. This experience also strengthened Marvin’s belief in the value of information from a frontline employee—the person selling in the field or building the product on the factory floor—and the value of that person’s knowledge. More often than not, the critical facts that needed to flow to the CEO could be found at the front line.
Armed with this insight, Marvin set out on a mission to help CEOs become more effective by showing them the necessity of eliminating the barriers erected by corporate hierarchy that so severely constrained locating and mining the knowledge inside a company. He recognized that CEOs of companies concerned about basic policy or strategy had no independent, objective advisers to turn to. For legal problems, they could go to a law firm; to raise capital, they could go to an investment bank; but when it came to advice on organizing and running a company, there was no professional firm of the necessary stature.
Marvin gave a name to this needed professional discipline: management consulting. (He later said he wished he had called it “consulting on managing” since he felt that was a more descriptive name.)4 In 1933, there were only two types of business advisers: the accounting and engineering firms and individual experts. Although the oldest firms in the field had already been founded—Edwin Booz & Company (now Booz∙Allen & Hamilton) in 1914; McKinsey in 1926; and Stevenson, Jordan and Harrison (now out of existence) in about 19185—their practices were still in relative infancy, and they considered themselves accounting and management engineering firms.6 At that time, the only professional top management consulting was provided by individual experts (primarily academics like Frederick Taylor), not by institutions. In fact, it wasn’t until 1950 that Booz∙Allen & Hamilton modified the title on its marketing materials to management consultants, and later, in the 1950s, that Arthur D. Little began calling what they were doing consulting.7 And it wasn’t until the 1960s that Boston Consulting Group was founded, and the 1970s that Bain & Company, Monitor Group, and CSC Index were founded.

Marvin Bower Meets James O. McKinsey

As Marvin was searching for a place to practice this new profession, the dean of Harvard Business School, Wallace Brett Donham, suggested that he talk with James O. McKinsey. McKinsey had seen a paper Marvin had written while at Harvard Business School and had called Donham to inquire about it. In a conversation with Steve Walleck, a partner in the Cleveland office at the time, and me in 1983, Helen Bower remembered the events leading up to her husband’s move to McKinsey:
Marvin and I were living right off Shaker Square, in a cold-water, third-floor walk-up. He had graduated from business school the year before and had come to Cleveland to work for Jones, Day, a law firm he very much respected.
It was 1931, right in the middle of the Great Depression, and Marvin was working mostly on bankruptcies and reorganizations. Somehow, a paper he wrote for one of his clients, a clothing manufacturer, fell into Mac’s [ James O. McKinsey’s] hands. Maybe it was through the Marshall Field connection, since that was Mac’s largest client. Mac wrote to Marvin and offered to interview him for a position, if he would come to Chicago.
Anyway, I didn’t want to go to Chicago. I had read about the gangsters there, and I had been told the weather was worse than Cleveland’s. So Marvin put Mac’s letter away—I suppose he wrote him a polite “No, thanks.”
We were just about scraping by on Marvin’s salary as a junior associate and what I was earning as a new teacher, when we received notice from Jones, Day that all salaries would be cut 25 percent the next month—I believe it was September. We worked it out, and figured that we could barely make ends meet. Marvin was a little bored with law and thrilled with helping businesspeople with their needs.
So we went to a little ice cream parlor right around the corner from Shaker Square—we couldn’t afford a restaurant—and talked about what we could do. I still remember the wrought-iron chairs and the printed paper tablecloths.
This was a turning point for both Marvin and Helen, but, as Helen recalled, the crucial decision was postponed. The world of management consulting might look considerably different today if Marvin Bower had ultimately not decided to take McKinsey’s offer.
Two years later, Marvin pulled out Mac’s letter, and said he wanted to go to Chicago to meet Mac and see what his firm had to offer. I was afraid to let Marvin go alone. In addition to gangsters in Chicago, our Cleveland Plain Dealer was reporting that bubonic plague had broken out, and people were dying on the streets. When we got there we didn’t see any bodies, though.
The problem was we didn’t have money enough for two tickets. And I told Marvin he wasn’t going to go without me.
We solved that problem by sharing one Pullman berth. That kind of thing was frowned upon in those days, even for married people. But Marvin always was a good problem solver.
When we got to Chicago, Marvin parked me at a hotel near the train station and went off to see Mac. He told me he would be back in an hour or two.
Two hours passed. Then four, then six. I was about to go out on the street to look for Marvin’s body when he came back to the room, all smiles.
“We got a job!” he shouted.
“You got an offer,” I responded. “Let’s talk about it.” So, back to Cleveland in the single berth. But we were getting better at it.
And then back to the ice cream parlor around the corner from Shaker Square. Marvin was full of ideas and excitement. He said there was room in business for a professional firm, laid out along the lines of Jones, Day, that advised business leaders on their business problems, much as Jones, Day advised them on their legal difficulties. He said that working with Mac would enable him to use his Harvard Business School training as well as his legal degree.
He said there were some things about his legal job he liked and some things he didn’t. He emphasized that Mac had said, “Why don’t you join us and enjoy your work completely.” The offer was fair, and even though it wasn’t an increase over what he had been making, at least it wasn’t a cut. So we agreed. We were going to Chicago.8
Looking back, Helen wondered, “what would the young people at McKinsey think if they knew this critical decision was made in an ice cream parlor!” “And I wonder how many would join,” Steve Walleck responded, “if they had to pay their own airfare to come for a job interview, and, instead of wining and dining them, we offered them banana splits.” For a moment, I doubted whether Helen heard Steve, since her eyes were closed. Then she opened her eyes and gave me a full smile. “Nothing wrong with banana splits,” she said. “And I still prefer trains to air travel, especially in the right company, and with improper accommodations.”
As it turned out, Helen’s fears about Chicago proved to be needless, because Marvin went to Chicago only to be told that he was going to be located in the New York office.9 A year later, he was running the New York office.
The McKinsey that Marvin joined in 1933 had been founded by James O. McKinsey, who had once been a professor of accounting at the University of Chicago and was a leading thinker in the importance of linking accounting to management. Founded in either 1926 or 1927 (there are conflicting reports), the original firm was opened in Chicago, with the addition of a New York office in 1932.10 Self-defining his new business as an “accounting and management engineering firm,” McKinsey offered advice to clients on how to use financial facts as an effective management tool and support for management decisions. McKinsey’s initial staff included two industrial engineers and no one with explicit training in management.
In 1935, James O. McKinsey decided to join Marshall Field briefly to help implement some of his suggestions, and “temporarily” merged McKinsey with an accounting firm called Scoville, Wellington. From Marvin’s perspective, the merger was not successful:
The most important lesson of the McKinsey, Wellington period—and one for which we paid a high price—is that no personal service firm can long endure dissension among the partners; that it is never any stronger than the commitment of the partners to the firm and to each other. Differences of opinion are healthy because their resolution among people of goodwill leads to sounder decisions. But when the guiding principles, the fundamental purposes, philosophies, policies, values, and attitudes cannot be reconciled rationally and emotionally, the majority had better force the prompt resignation of the dissenters.11
Soon thereafter, in late 1937, James O. McKinsey died unexpectedly of pneumonia (see Figure 2.1). Marvin reflected on James McKinsey’s death in his memoirs:
In October 1937, he made an exhausting tour of the Marshall Field mills and returned with a severe cold, which turned into pneumonia. Since there were then no specific antibiotics for his type of pneumonia, he died ten days later, in November. Everyone was stunned. Certainly I was. My hero was gone. The degree of my admiration and affection for Mac is best reflected in the fact that Helen and I named our third son, born the following January, James McKinsey Bower. My personal loss was that the man I admired most was gone; my career loss was that I had had less than two years to learn from my mentor.12
FIGURE 2.1 JAMES O. MCKINSEY DEAD AT 48 (The Herald Tribune, December 1, 1937)
003
FIGURE 2.2 CHRONOLOGY OF MARVIN BOWER’S PURCHASE OF McKINSEY & Co.
004
Almost simultaneously with McKinsey’s death, the firm’s largest engagement, the U.S. Steel study, came to an end, and McKinsey, Wellington, went into a no-profit situation. That is when Marvin led a group in buying back McKinsey & Co. from the merged entity. (See Figure 2.2.)

Marvin and His Partners Buy McKinsey & Co.

In 1939, a mere six years after joining McKinsey & Co. as a new associate, Marvin Bower and his three partners—Guy Crockett, Dick Fletcher, and Ewing “Zip” Reilley—bought the then 18-person accounting and engineering management firm with a regional presence (primarily in the East), a 13-year history with now problematic economics, and limited use of the McKinsey name. Marvin continued to lead McKinsey & Co. until 1967,13 and was active in protecting and syndicating ownership of his vision until his death in 2003.
How did the 35-year-old Marvin Bower, the distinctly junior member of this new partnership, convince his three co-investors14 (two over 60 years old)15 to leave their careers in established institutions, invest their money, and risk their personal assets,16 and embark on a journey to not only build an institution but also create the heretofore unknown profession of management consulting? Marvin was able to persuade his partners to join him on this potentially perilous journey by articulating a clear vision of a management consulting profession and the institution that would play this professional role. Marvin’s concept included elements of James O. McKinsey’s vision (e.g., bringing the facts to management, the importance of training, the desire to work for prestigious clients), but went well beyond Mac’s original idea and was based on experience, values, and logic that were both convincing and transferable to others. From the moment of acquiring ownership until his formal retirement in 1992, Marvin lived and breathed that vision, always leading by example but never afraid to listen to and test new ideas.
Some 12 years after Marvin’s departure from McKinsey, it is fair to say that the story of Marvin Bower as an institution creator, profession builder, and leader’s leader can provide valuable lessons applicable to a variety of professions—lessons as relevant today as they were in 1939.

CHAPTER 3
The Profession and the Institution
Our optimism about the future was based on a solid belief in the need for our type of service and our capacity to deliver it. We had seen the value of our work and had observed that client executives recognized it. . . . Although we made no formal declaration of our goal, we did discuss these lofty ambitions almost constantly among ourselves. Indeed, if we had not been ambitious, optimistic, and somewhat visionary, we would never have had the courage to go ahead at all.
—Marvin Bower, 1957 1
 
 
 
With a high level of optimism and a clear vision of the target profession and target institutional vehicle for conducting management consulting, the four partners began their journey. (See Figure 3.1.)

The Profession: Management Consulting

From the outset, Marvin and his three partners had a clear vision of the profession that would be management consulting and of the independent and unbiased posture that would be required to create the reputation needed to attract CEOs to their services. It was a revolutionary vision in all regards.
The notion of management consulting was virtually unheard of at the time. Ruth Neukom, the wife of one of the original 15 members of the firm, remembers the challenge faced by this firm and profession:
FIGURE 3.1 BUILDING AN INSTITUTION: BOWER’S TARGET VISION
005
2