The Bank of England (BOE) recently hired McKinsey and Deloitte to examine the strategy and operations of the central bank. The hiring has caused a stir within the British media in the past two months – the BOE would have given too much responsibility to the consultants. Also, it would be a sign of weakness and entail risks. This led to the decision by the BOE to clarify the division of roles: “We will determine our own strategy, McKinsey and Deloitte are supporting the review”, according to the central bank.
End-October, Consultancy.uk reported on the hiring of McKinsey and Deloitte. Their most important task: reviewing the central bank's strategy and operations and drafting improvement plans. The evaluation is expected to be completed by the end of the month.
Following several varying reports in the British media, especially around the strategy work of McKinsey, the 319-year-old institution has decided to clarify the role of the consulting firms. “McKinsey's role is to support our strategy definition process. From their experience they provide us with a fact-based analysis, input regarding similar organisations and help us with arranging visits to some of these companies. McKinsey guides the process, but the directions are in the hands of the bank”, Hogg adds.
In the meantime, the consulting firms have delivered progress reports on the two reviews to the Court of Directors (the Bank's supervisory board). The directors described them as helpful and Court member Bradley Fried was “impressed by the progress so far.” The first draft of the complete reviews will be presented by the end of January. February is reserved for the implementation of adjustments and the sharing of information with a broader group of senior stakeholders.
* Charlotte Hogg monitors the work of the consultants. She started her career at the central bank of the UK before they transferred to McKinsey in Washington in 1994. She re-joined the BOE in July 2013 back after a period at Banco Santander.