Yakov & Partners (formerly McKinsey in Russia)

History

2022

Change of name to "Jacob & Partners"

In August 2022, it became known about the renaming of the former Russian "daughter" McKinsey. The new company began to be called "Jacob and Partners," it will continue to provide consulting services in the market. This name is a tribute to tradition in strategic consulting, said Yakov Sergienko, CEO of the company.

The company noted that Yakov and Partners by August 2022 unites more than 15 partners - immigrants from the Big Three companies.

McKinsey's Russian division changed its name

At the first stage, Yakov & Partners will focus on projects in the technology sector, banking services, agriculture, retail and extractive industries. As of August 2022, the company employs more than 180 people, the report says (quoted by TASS).

Yakov & Partners added that the company has its own global expert network and plans to actively expand, developing cooperation with CIS companies and BRICS countries.

The full launch of the brand will take place in several stages and will be completed by the end of 2022.

The demand for strategic consulting services is higher than ever not only in Russia, but also around the world. Our operating model will differ slightly from classical strategic consulting: we plan to integrate deeper with our clients, work, among other things, as a co-investor and help Russian companies in the development of international relations, - said Yakov Sergienko.

Changing the name until September was one of the terms of the deal, Yakov Sergienko told Forbes. The new owners decided to expand the business: if earlier McKinsey acted only as a consultant, now the company will act, among other things, as a co-investor and partner, offering a solution to complex turnkey problems, the top manager reported.^[1]

The number of employees decreased by 7 times

As it became known at the end of May 2022, the number of employees of the Russian office of McKinsey after the start of the military special operation of the Russian Federation in Ukraine decreased 7 times. The company decided to change the business model in Russia, Yakov Sergienko, former managing partner of McKinsey CIS, told Forbes.

If earlier McKinsey provided only consulting services in Russia, now the company plans to act as a co-investor and partner. By agreement with the head office, the company can work only with Russian clients, but Sergienko is considering entering the international market within two to three years.

The number of employees of the Russian office of McKinsey has decreased by 7 times

According to him, by the end of May 2022, more than 100 out of 760 people remained in the Russian division of McKinsey before the crisis, the rest moved to the United States and Europe. The company intends to unite the consultants remaining in Russia and increase the staff to 200-300 people within two to three years.

Key employees remained to work, for us it is a unique team, ready to implement the most daring ideas in a new reality. During this time, we have already launched several new directions, the implementation of which three months ago was impossible to even imagine, - said Sergienko.

Since McKinsey's competitors have left the Russian market - Bain and, Boston Consulting Group the company plans to expand its staff by combining the remaining Russia consultants from former competing companies. Sergienko noted that consultants will point to solve complex problems. Among the most important industries, Yakov Sergienko named agriculture, agricultural engineering, logistics, metallurgy, mechanical engineering and microelectronics.

Unlike boutiques, we rely on consistency: in addition to consultants, we will invest in building functions and a full-fledged research center, as well as in ensuring access to external expertise, "Sergienko added.[2]

Sale of Russian business to local managing partners

In mid-May 2022, it became known about the sale of McKinsey & Company's Russian business to local managing partners. As Kommersant writes with reference to the Unified State Register of Legal Entities (Unified State Register of Legal Entities), the owners of McKinzie and SiAiEs LLC were Russian general director Yakov Sergienko (33%), Sergey Zaborov, Elena Kuznetsova, Tigran Sahakyan and Victor Surkov (16.75% each). Financial and other parameters of the transaction are not disclosed.

Sahakyan was listed on the McKinsey website as a project manager for companies in the raw materials industries, is a member of the company's expert groups on raw materials and basic industrial materials, the energy sector and operating activities.

McKinsey sold Russian business

Elena Kuznetsova headed the direction of work with Russian state bodies, specializes in projects to improve state settlement, preparation and implementation of reforms, development of regional development strategies and other issues.

Yakov Sergienko told the publication that the head office could not continue cooperation with the Russian company due to sanctions, but as a result of the transaction, the parent company transferred all relations with customers and the necessary materials. According to him, by the end of August 2022, the new owners must change the name of the company.

We will now be able to work with a significantly larger number of customers, remaining independent in their choice, "said the main co-owner of the company.

According to Sergienko, several McKinsey consultants will remain in the office during the transfer of all cases and processes.

McKinsey's Russian office had its own profit and loss report, which could show how profitable this business had to evaluate it, said Aleksei Solovyov, founder of the investment company A.Partners. But such a deal, in his opinion, falls into the category of "special situations," and it is difficult to evaluate it from the outside.^[3]

Termination of customer service in Russia after the outbreak of the conflict in Ukraine

Consulting company McKinsey has stopped serving clients in Russia, which it announced on April 18, 2022.

The provision of all services to customers in Russia has been terminated since April 15, 2022, the McKinsey website said in a statement.

The company associates its decision with the company's desire to fulfill the obligations undertaken on March 3 in connection with the special military operation of the Russian Federation in Ukraine.^[4]

In early March 2022, the company warned that it had decided to do so after completing its remaining commitments in connection with Russia's military operation in Ukraine. At the same time, McKinsey stopped concluding new contracts in Russia and stopped working with government agencies. The company stressed that its Russian office will remain open to support employees.

2021: Ban on the expression of political views in social networks to employees from the Russian Federation

On January 23, 2021, it became known about a warning letter that McKinsey management sent to employees. This report said that people working for the company cannot support any political activity either publicly or privately, in accordance with the company's policy. The ban also concerns the publication of their political views on social networks and the media.

According to McKinsey's official code of professional conduct for employees, "colleagues should not express personal political views in a way that could jeopardize the company's reputation as politically neutral."

Russian McKinsey employees banned from expressing political views on social networks

This line of behavior is mandatory. Please make sure that you are at a considerable distance from the gathering places (Pushkinskaya Square in Moscow and Senate Square in St. Petersburg) at about 14:00 on January 23, the letter says, excerpts from which are quoted by RBC.

Florida member of the US Senate Marco Rubio called the consulting company McKinsey an accomplice of "authoritarian repression" in Russia after the Russian office of the firm urged its employees not to participate in protests in support of Alexei Navalny. This was reported on January 24, 2021 in the press service of Rubio.

The senator demanded clarification of the call not to participate in rallies, as well as to check whether one of the McKinsey employees "consulted with representatives of the Vladimir Putin regime" before sending the letter. Rubio recalled that before that he had already criticized the company for cooperating with the Chinese authorities - in his opinion, McKinsey has connections with representatives of the Communist Party.

How could it happen that Vitaly Klintsov, managing partner of McKinsey in Russia, formulated such radically excellent instructions regarding the rights of employees to freedom of association? Rubio's letter says.[5]

2017: Contract for the development of an IT strategy for VTB for 293 million rubles

At the end of April 2017, VTB Bank signed a contract with the Russian division of McKinsey & Company for consulting services to develop a detailed IT strategy for 2017-2019 and its implementation program. These services will cost the financial institution 293 million rubles. See VTB IT Strategy for details

2011: Development of an IT strategy for VTB

VTB Group's new IT strategy was developed from April 2009 to November 2010, VTB Bank reported. The consultant for its creation was McKinsey, with which VTB has been cooperating for 5 years, and with the assistance of which the previous IT strategy was developed (for 2007-2010). See VTB IT Strategy for details

Notes