James O. McKinsey

Who founded McKinsey & Company?

McKinsey & Company was founded in Chicago by the American professor James Oscar McKinsey.

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How McKinsey started

Who was James McKinsey?

James Oscar McKinsey (June 4, 1889 – November 30, 1937) was born in Gamma, Missouri. He is the founder and first owner of the management consulting firm McKinsey & Company, Inc.

McKinsey (or Mac, as he was known by friends) was the son of James Madison and Mary Elizabeth Logan McKinsey. He had a modest upbringing and was raised in a three-room house in the Ozarks.
portrait of James O. McKinsey in Chicago’s Accomplishments and Leaders series
Rare picture of James O. McKinsey in Chicago’s Accomplishments and Leaders series (1932)
McKinsey completed his high school and continued his education at Warrensburg Teachers College (now University of Central Missouri). In 1912, he received a Bachelor of Pedagogy. He also studied Law at the University of Arkansas (1914), Bookkeeping at the St. Louis University as well as Philosophy and Commerce at the University of Chicago. In 1919, McKinsey passed his Certified Public Accountant examination. He is also credited for writing the first textbook in managerial accounting, in the same year.

Picture of map showcasing the birthplace of McKinsey
Map showcasing the birthplace of McKinsey

During World War I. McKinsey served as a Lieutenant in the ordnance department of the Army (Quartermaster Corps). He supported the development, production, and acquisition of general supply all over the United States. From 1920 to 1921 he lectured accounting at Columbia University. In 1921, he joined the private accounting practice of George Frazer (Frazer and Torbert).

Portrait of James O. McKinsey as a student in 1912
How James O. McKinsey looked like as a student (1912)
As of 1924, McKinsey’s interests began to shift from accounting and budgeting to managerial accounting. In 1925 he left the consulting firm of Professor Frazer. One year later, he founded James O. McKinsey and Company. His aim was to advise management instead of merely offering accounting services or tax advice. In doing so, he emphasized the need for continued education and life-long learning.

In 1930, James McKinsey married Alice Louise Anderson. They had twin sons, Robert and Richard McKinsey.

McKinsey died of pneumonia in Chicago on 30 November 1937.

Further reading: "The Palgrave Encyclopedia of Strategic Management"

Who owns McKinsey?

James O. McKinsey was the first CEO and owner of McKinsey & Company. He was the main salesman in the company as well.

As managing partner, his appearance impressed people. He was tall – 1.87m, and dressed conservatively. He hired outstanding people such as Marvin Bower and Tom Kearney to work for him. In fact, many of the men he employed were students in his classes at the University of Chicago.

In 1935, James McKinsey left the company and joined the board of Marshall Field & Company. Under McKinsey’s leadership, Marshall Field reported a net income of $1,2 million (that has a relative project worth of $356 million today). Today, McKinsey & Company is organized as a private corporation with shares owned by its partners.

James McKinsey and his partners, including Marvin Bower and Tom Kearney.
James McKinsey and his partners, including Marvin Bower and Tom Kearney.

The McKinsey Society

Besides heading Marshall Field, McKinsey was a director of the Chicago Corporation and the Kroger Grocery and Baking Company. He also was a member of the board of trustees of the Armour Institute of Technology as well as a member of the board of managers of the Chicago Young Men’s Christian Associations, and a director of the Central Y.M.C.A. College. Other memberships included different fraternities, Golf Clubs of Chicago, and the Rookery of New York.

A rare photo and of James O. McKinsey: owner and founder of McKinsey & Company.
A rare photo of James O. McKinsey: owner and founder of McKinsey & Company.

James McKinsey initiated his prolific writing career in 1919. His works are a guiding light for accountants, aspiring leaders, top managers, partners, and CEOs.

James O. McKinsey
  • Bookkeeping and Accounting (Cincinnati, Ohio, South-Western Publishing Company)

    James McKinsey teaches readers how to record transactions on the debit and credit side of the cash book. He illustrates how the cash book is balanced, how often it needs to be balanced, and how the correctness of the balance can be proven.

  • James O. McKinsey and Hodge, A. C.: Principles of Accounting (Chicago, Illinois, University of Chicago Press, 1920)

    McKinsey explains key rules and guidelines that corporations must follow when reporting financial data.

  • James O. McKinsey and Meech, S. P.: Controlling the Finances of a Business (Chicago, Illinois, University of Chicago Press, 1920)

    McKinsey solves the everyday problems of financial administration from the point of view of the treasurer and chief financial executive. He applies “scientific management” to financial planning and controlling.

  • Managerial Accounting (Chicago, Illinois, The University of Chicago Press, 1924)

    McKinsey teaches students and managers how to use accounting to solve business challenges. He focuses on standard procedures, financial standards, and operating standards.

  • Relation of budgetary control to cost accounting, 1922, Pamphlet

    McKinsey explains the managerial uses of budgets and the vital role of cost accountants. He illustrates the preparation of sales, production, plant equipment, and purchase.

  • Business Administration (New York, American Management Association)

    The theoretical man knows why. The practical man knows how. The man who would lead must know why and how: McKinsey develops a system for understanding a company in its entirety: from finances to competitive positioning.

  • Coordination of Sales, Production and Finance (Cincinnati, Ohio, South-Western Publishing Company, 1924)
  • Federal Income and Excess Profit Tax Laws (Cincinnati, Ohio, South-Western Publishing Company)

Famous quotes from the founder of McKinsey & Company, James Oscar Mckinsey:



James O. McKinsey Case Study: Organization and Methods of the Walworth Manufacturing Company

The Organization and Methods of the Walworth Manufacturing Company In this journal article and case study, James McKinsey explains the history and organization of Walworth & Nason. The company was originally engaged in contracting and construction work. He illuminates the phenomenon of business administration as: (a) the establishment of policies, (b) setting up of an organization to carry out these policies; (c) the operating or running of the organization which involves the establishment and enforcement of operating procedures.

Today, McKinsey & Company is a global management consultancy with one of the hardest entry requirements.

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How to land a job at McKinsey

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The Secret to Getting Hired at McKinsey

Getting hired at McKinsey is not as easy as you might think, owing to the high number of people who apply to these firms and their stringent conditions for hiring. These firms only work with the best minds, and as such, there is a lot of competition for those getting looking to hired by one of these firms.

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How To Get Hired By McKinsey & Company

Before you apply, make sure you’re willing and able to take on the lifestyle of a McKinsey employee. This means long hours (early mornings and late nights), loads of travelling, lots of time with co-workers and high stakes, high pressure work.

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McKinsey: How to get hired

No matter where you come from, McKinsey looks for the same qualities in all its candidates. It boils down to three qualities. They look for problem solving, the ability to work well in teams, and the ability to develop strong relationships. “These are at the core of what our consultants do every day and how we work with our clients.

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How to get into consulting: 6 steps to land a job offer

The good news is, that with the right preparation, getting a consulting job is actually pretty straightforward. Here is a compiled list of steps you need to follow to get there.

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What working at McKinsey is really like

McKinsey hired its first Harvard M.B.A. in 1953 and continues to cherry-pick from the school’s Baker Scholars—the top 5 percent of the graduating class. At one point, more than a third of the firm’s consultants held a Harvard M.B.A. The firm’s consultants were required to wear fedoras until President Kennedy stopped wearing them.

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The Story of McKinsey & Company

They helped invent the bar code. They revolutionized business schools and created the corporate practices that now influence our world. They reinvented the idea of American capitalism and exported it across the globe.

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McKinsey's director of recruiting explains how to get a job at McKinsey & Co

We hire people from all walks of life and look for candidates who demonstrate curiosity, passion for tackling difficult problems, and the ability to work well with others. Hires with prior work experience often acclimate and understand work expectations and norms from day one. Many of our new hires come from undergraduate institutions, while a significant portion hold advanced degrees with several years of work experience.

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Getting rejected and then landing my dream job at McKinsey & Company

The two years I spent at McKinsey helped shape the person I am today and the leader I aspire to be. My time there was a period of unconstrained growth. McKinsey raised my expectations of what was possible for modern organizations. It made me realize that high-performing organizations were not only achievable but worth all the time and investment they took to sustain.

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James McKinsey was a feverish writer and founder of McKinsey & Company. McKinsey is known for his many books and monographs that changed the world. Today, his eponymous firm consults some of the biggest names in the world of business. Including Daimler, Coca-Cola, and Microsoft.

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