4. Is the most significant challenge to Mc Kinsey an internal one or a client market one?

Mc Kinsey would face challenges both internally and externally but the most prominent
challenge would be tackling client market. Senior Partner himself admitted of divulging
confidential client information to Galleon Group. The wiretap conversation that was released
prove Senior Manager of being guilty for disclosing privileged information to outsiders. By
doing this, he violated one of the core values of adhering to highest professional standards
followed by Mc Kinsey. Mc Kinsey as a brand is trusted by clients all over the world. So,
when the news of insider trading reaches a wider audience gaining the trust of clients would
become difficult. Trust and Confidentiality forms the foundation for Mc Kinsey’s relationship
with its clients. Therefore, significant changes in policies and procedures should be devised
to prevent such instances in future. Measures should also be taken to uphold five primary
duties drafted by Marvin Bower. Expansion and growth of the company should not come at
the cost of company’s values and culture. Rebuilding of morale among the Mc Kinsey
members is essential to regain the trust of clients.

2. Is her gender playing a role in her apparent lack of influence on the board?

Yes, Sarah’s gender is one of the factors contributing to her apparent lack of influence on the
board.

 Despite being an experienced consultant in real estate, one of her fellow directors
accused her of having a private agenda of taking down the CFO
 Another director said “she talked too much, just like his teenage daughter”
 The rest of the directors considered her to be pushy
 Her opinions seemed to be the minority view and she felt isolated since was the only
female director on the board
 When she questioned the CFO’s strategy, Bill Offutt, Chairman of the company ended
the discussion and moved on without addressing the issues.
 Even though J.P.Offutt considered Sarah’s questioning to be informed and insightful,
he failed to take her side when Sid Yerby, the CFO gave an ultimatum
Sarah was trying to exercise her fiduciary duty of care and loyalty but because of her gender
her intentions to make decisions were questioned/misunderstood by her male counterpart.