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Lebanon Hires McKinsey to Help Revamp the Economy

HannaTheCrusader

HannaTheCrusader

Legendary Member
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Let's not bring religion into
The McKinsey and Booz guys in the Midlle East would never be hired by McKinsey/Booz for a position in the US or Europe. Those are of lower caliber, that fits the 3rd world region (Saudi, Lebanon, etc..)
cool down

they did the samefor Sri Lanka and the govt is implementing their recommendations and doing well
 
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  • Resistancefrom89

    Resistancefrom89

    Well-Known Member
    most major countries resort to private consulting firms to draw medium and long term plans for the economical development.

    el hmar is the one who keeps hampering the efforts to launch new power plants for years and years raising questions about few million dollars when the energy sector in Lebanon is costing the government more than 5 million dollars per day in losses, that's around two billion dollars per year worth of hamraneh.
    Consulting can not fix corruption. You do not need a consultant to know what is blocking the build up of new power plants. Why was this consulting contract given to McKinsey rather than Booz that has more insight into the Lebanese administration
    Which friends is Mr Cedrus trying to please? What customers/connections/favors will they be doing to Cedrus after Mr Cedrus resume his work there?
     
    Resistancefrom89

    Resistancefrom89

    Well-Known Member
    Putting strategies for countries is at the core of what they do, they did it for KSA
    What a reference :) Tell me they did it for Germany, UK or France :)
    Btw not trying to defend Jumbi. That guy is history and not even worth listening to
     
    Nonan

    Nonan

    Legendary Member
    Orange Room Supporter
    Putting strategies for countries is at the core of what they do, they did it for KSA
    I wouldn’t say at the core of what they do. They do some economic development work but that is less than 5% of what they do. Even there, it is rarely a “country” strategy all together, usually it is more sector or topic specific (e.g. Labor
    reform that BCG did for KSA in 2015 and 2016). The KSA was more the exception (and several consulting firms worked on that, including McK and BCG, and made a lot of money) but unless you have centralized power and a capable administration that can execute (or endless means to pay the consultants for years), nothing will get done. Singapore does his things well. Others try to emulate but these projects end up being useless.

    The consultants can bring a lot of fresh thinking, insights, analytics, execution disciplines, etc. But they’re not God.
     
    Nonan

    Nonan

    Legendary Member
    Orange Room Supporter
    Consulting can not fix corruption. You do not need a consultant to know what is blocking the build up of new power plants. Why was this consulting contract given to McKinsey rather than Booz that has more insight into the Lebanese administration
    Which friends is Mr Cedrus trying to please? What customers/connections/favors will they be doing to Cedrus after Mr Cedrus resume his work there?
    Boos&co doesn’t exist anymore. It got bought by PwC and became Strategy&. A lot of the ex Booz joined BCG
     
    Nonan

    Nonan

    Legendary Member
    Orange Room Supporter
    Let's not bring religion into
    The McKinsey and Booz guys in the Midlle East would never be hired by McKinsey/Booz for a position in the US or Europe. Those are of lower caliber, that fits the 3rd world region (Saudi, Lebanon, etc..)
    That is a very broad generalization. BCG, McK have very strong internal training capabilities and have ultimately an apprenticeship model. Give them smart, hard working people and they can turn them into the best consultants. There is a BCG senior partner in Paris who is Lebanese. Now, for the senior talent to come and work in the Middle East, usually it is because it is “easier”to sell projects here because clients are less sophisticated. Hence, you usually get the less successful partners
     
    Nonan

    Nonan

    Legendary Member
    Orange Room Supporter
    You can also give a thousand workshops but if people don't want to learn or apply what they learned it's just as useless.

    The vision is a start and a good one.
    Workshops, trainings, initiatives, etc definitely have to follow with the state's impulse.

    Moreover, when you do the workshops, etc, based on what strategy do you choose them?
    A vision is a start, the rest is up to the state to decide what to do about it.

    I have little faith they will, but I'm interested in the vision.
    I said workshops because usually McK or BCG would do them for free. He upfront vision work shouldn’t be hard once you have an accurate assessment of underlying capabilities. It is a 10to 12 week project with one Principal and 3 consultants. Using US tariffs, this amounts to $2M. But you only get a theoretical document with little buy in and no momentum to take action. And you’re $2m shorter. Convene McK, BCG, PwC, Bain for a 2 day brainstorming conference, give each firm two topics, have them facilitate sprints (workshops and quick design sessions) with smart government people, and then pick one to create an overlay vision on top of that, and you would get that for free :)
     
    CitizenOfTheRepublic

    CitizenOfTheRepublic

    Legendary Member
    Here is a sad hearsay I heard when Lee Kwan Yew, the founder of Singapore, passed away. Turns out he had visited Lebanon in the 1970s and stated that he wished Singapore would become like Lebanon. Yet another reason why the generation that started the Lebanese war has a special place in hell.
     
    Nonan

    Nonan

    Legendary Member
    Orange Room Supporter
    Here is a sad hearsay I heard when Lee Kwan Yew, the founder of Singapore, passed away. Turns out he had visited Lebanon in the 1970s and stated that he wished Singapore would become like Lebanon. Yet another reason why the generation that started the Lebanese war has a special place in hell.
    His role model was Fouad Chehab
     
    !Aoune32

    !Aoune32

    Well-Known Member
    A firm is hired to fix the economy? LOL
    The government ALL of it should resign.
     
    The Jade

    The Jade

    Legendary Member
    Consulting folks are people with academic background with insignificant operational background. They are mostly brought to justify management decisions. Let's not treat this topic as viewers of a football game where viewers start cheering for a club, while they have never played serious football in their life
    Let's not bring religion into
    The McKinsey and Booz guys in the Midlle East would never be hired by McKinsey/Booz for a position in the US or Europe. Those are of lower caliber, that fits the 3rd world region (Saudi, Lebanon, etc..)
    You seem to have a certain disdain for consulting firms, especially McKinsey and Booz.

    It is also not true that their staff are only academics with no operational experience and even less true that they are of low caliber.
    Many of them are transferred across countries and continents to other offices around the world.

    And no, I'm neither a consultant nor own shares in either of those companies.
    But to shit on those companies as if they're useless is a bit unfair
     
    The Jade

    The Jade

    Legendary Member
    Here is a sad hearsay I heard when Lee Kwan Yew, the founder of Singapore, passed away. Turns out he had visited Lebanon in the 1970s and stated that he wished Singapore would become like Lebanon. Yet another reason why the generation that started the Lebanese war has a special place in hell.
    This just hurts...
     
    J

    joseph_lubnan

    Legendary Member
    Person paying the consultant: I think the answer is somewhere between 7 and 8, but I'm not sure, and don't want to bias you in any way at all, I want what is best

    Consultant: don't worry, we will interview everyone, document everything create models, do focus groups, some surveys and crunch numbers and we will recommend best course of action

    Person paying the consultant: great you have full access

    Consultant does whatever consultants do and comes back: we did a thorough analysis and there are really three best options for you to select. Option 1: 5+2 or option 2: (100-85)/2 or option 3: 70-62. These are the best answers according to our extensive analysis, and here are 5000 pages of interviews and spreadsheets to back that up. See you next time.
     
    spacecreature

    spacecreature

    Well-Known Member
    Here is a sad hearsay I heard when Lee Kwan Yew, the founder of Singapore, passed away. Turns out he had visited Lebanon in the 1970s and stated that he wished Singapore would become like Lebanon. Yet another reason why the generation that started the Lebanese war has a special place in hell.
    If the roles were reversed , which country can we visit today and say oh we wish we could become like this...what country is our role model today?
     
    Chanklish

    Chanklish

    Well-Known Member
    ill do it for free :
    -crooked politicians
    -stupid (also crooked) population
     
    T

    tkettaneh

    New Member
    The government hired Arthur D Little 18 years ago to evaluate / recommend a strategy for the Lebanese economy; nothing was done about their recommendations...
     
    gramsci

    gramsci

    Legendary Member
    This is a wasted money..

    Lebanon before any talk about economic developpment have a structural political problem ... if its entire political system does not get revised..the form of state ..division of power state role market role .laws and legislative role.geopolitical role.. any economic study is a waste of time and money...
     
    HannaTheCrusader

    HannaTheCrusader

    Legendary Member
    Orange Room Supporter
    Muslim dont want progress ( maybe hariri wants now), for sure shia dont want
    they want a milking cow...and of course they have many zhummes from both sides who will do their bidding


    نشرت السيدة ميراي عون، إبنة فخامة الرئيس العماد ميشال عون والملقبة بـ " يد " الجنرال، على صفحتها الخاصة على موقع " فايسبوك " نصا جاء فيه:
    "يللي حكموا لبنان من ٢٨ سنة وصلّونا ندفع كل يوم ١٦ مليون دولار فوائد على الدين العام.


    نفسهم آخد ع خاطرهم اليوم انو لبنان يدفع ١.٥ مليون دولار حتى نجمع الدراسات يللي انعملت ونجرب نوضع دراسة اقتصادية عصرية حتى نجرب نطلع من هل الوضع المأساوي يللي وضعونا فيه.
    اسألوا اولادكم لان هنّي بيعرفو ان حكيكم مخرّب. ما بتخللو ولا فرصة لأي مشروع يمشي بلبنان."
     
    LiNk

    LiNk

    Legendary Member
    Orange Room Supporter
    Very good move by minister Khoury, the news even reached the main page of Bloomberg! Joumblatt can bark as much as he pleases.

    The assignment is small and meant to provide a white paper on how to prioritize our economic strategy going forward. It's a tiny expense (1.5 m$), and the signaling effect of hiring such a firm can be leveraged tremendously in our upcoming international summits (e.g., Paris).

    It's a strong signal to capital markets and to our economic partners that we mean to be back in business!
     
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