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McKinsey shifted to outcome-based fees in November 2025, pressuring traditional time-and-materials billing across consulting. Agencies and consultancies are adapting their pricing models as the industry moves away from hourly rates.
McKinsey shifted to outcome-based fees in November 2025, pressuring traditional time-and-materials billing across consulting. Agencies and consultancies are adapting their pricing models as the industry moves away from hourly rates.
So Neil, I don't know if you know this, but do you know what percent of McKinsey's fees now are outcome-based? I'm going to take a guess and say 15%. 25%. Oh wow. As of November 2025. Yeah. So it's interesting because I was sitting on the couch yesterday, I was watching— before I was about to watch the Spurs-Knicks game, but I was watching Patrick Bet-David talking about how consultancies have changed, right? Where they used to charge you $5 million and now like the work maybe it's like $10,000 or so. So like a lot of people are customers, past customers or current customers of McKinsey are applying pricing just saying, hey, yo, like I know you need to charge us, but like this work doesn't take that long anymore, right? And that's interesting to me because agencies, consultancies are so used to charging on typically time, materials, and hours, right? So I don't think you're seeing that right now. I'm not seeing that either, but I can see it on the rise.
