This news is a little old but I thought I would flag it because it hasn't received much coverage in India. BCG, the consulting firm, is facing flak for its involvement with the Gaza Humanitarian Foundation, a dubious outfit involved ostensibly in distributing humanitarian aid in Gaza. GFH is an Israel-US initiative that seeks to bypass UN agencies doing good work.
BCG, FT reports, contracted some $4 million of work that includied modelling the costs of relocating an estimated 500,000 people from Gaza. BCG says the work was done by two partners inspite of disapproval from a higher level, the firm never took any payment finally and it also fired the two partners. BCG has now hired an external firm to help it address what it calls "process failures". FT has done a fantastic piece of investigative reporting.
BCG has recognised the reputational damage and done its bit to distance itself from the project. However, many will wonder how a consuting project could go on without the knowledge of top management and after top management had withheld permission for the same. Was any billing done? And, if so, would the accounts department not check what the project was? What does it say about internal controls if a project could go on in secret for months together?
The BCG controversy follows controversies at other firms, notably McKinsey and PwC. McKinsey, in particular, has taken a terrific beating. The question that arises is: what is the value of advice dished out by top consultants who cannot set their own house in order? For the consulting fraternity, the message is clear enough: Physician, heal thyself.
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