McKinsey only gets paid if it performs

23 Jun 2026 · 1 min

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This content was created by Eric Siu. This content was uploaded by Eric Siu. This is a YouTube video titled "McKinsey only gets paid if it performs" (created 2026-06-23). The excerpt is a single-speaker (labeled SPEAKER A) explanatory segment in English describing an outcome-based McKinsey engagement in supply chain and procurement that leverages QuantumBlack (their AI/agent tool) to analyze historical supplier spending, renegotiate terms, and optimize purchasing. It outlines the payment and performance metric: total hard-dollar cost reduction over a 12–24 month period, with a reduced base fee of $1 million plus a 15% performance bonus on the first $50 million of identified savings (i.e., a $7.5 million success fee), yielding total billing of $8.5 million. The tone is descriptive/financial.

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McKinsey is doing an outcome-based contract in supply chain and procurement. They can scale fees to save dollars if they deploy Quantum Black, which is their AI agent tool to analyze historical supplier spending, renegotiate terms, and optimize purchasing. The metric is total hard dollar cost reduction achieved for over a 12 to 24 month period. The reduced base fee is $1 million, a performance bonus of 15% of the first $50 million in identified savings. McKinsey's total billing would be $8.5 million. So base fee plus $7.5 million success fee, which I think is good for both sides. So they make more money. They make more money, but It is tied a little more to, hey, you have to perform.