Happy Monday, team:

A few quick updates.

Thanks to the 5,000+ of you who are giving this a read - we’re excited about the growth of this community. If you want a chance to win a $100 Venmo / Zelle, refer a few of your work friends to this newsletter using your custom link at the bottom - the more consultants, the better 🤠 We’ll also send you the links to some pretty ~spicy~ McKinsey client presentations about opioids + prisons if you share.

The feedback was overwhelmingly positive from last week’s post, but we’ve tweaked some things based on feedback to make it better. There is a way for you to share feedback at the bottom - we pay close attention, feedback is a gift, please let us know how we’re doing.

Ok, let’s go.

📰Consulting news + gossip 📰

👀Our favorite gossip this week👀

• PwC buys everyone a ChatGPT subscription so their employees have an excuse to post about something on LinkedIn

• McKinsey BA can’t escape their bad performance reviews as they hunt for a new job

• Accenture literally buys a firm called PIP lol

• A consultant is so burned out they want to become an… escort?

Top story: Bain report steers American Airlines to fire top executive

In recent developments at American Airlines, CEO Robert Isom made a significant executive decision by terminating veteran executive Vasu Raja. This action was prompted by feedback received from a report commissioned from Bain & Company. The report revealed significant concerns from travel advisors about a recent shift in the airline's sales approach, which has contributed to lagging revenue over the past few quarters.

The consulting firm’s findings highlighted that American Airlines' new sales strategy, termed "modern retailing," aimed to encourage customers to book directly through the airline's website or app rather than through booking agencies. This shift was intended to streamline the booking process and increase direct sales, potentially boosting revenue. However, this approach faced backlash from corporate clients and travel management firms who felt the technology was underdeveloped and disruptive to their established booking processes.

The report by Bain & Company underscored that American Airlines’ aggressive implementation of the new system led to dissatisfaction among some of its key corporate customers. The system's rapid deployment did not allow sufficient time for adaptation or feedback incorporation, which further alienated these customers. As a result, American Airlines experienced a decline in managed corporate travel volumes, trailing behind competitors such as United Airlines and Delta Air Lines.

Raja's departure and the subsequent drop in American Airlines' stock value reflect the immediate financial impact of the reported missteps. The airline’s decision to pull about 40% of its fare content from legacy distribution systems last year, removing lower-priced tickets and pushing higher fares onto corporate customers, further exacerbated the situation. This strategy, aimed at increasing direct sales, instead alienated many long-term clients and led to substantial revenue challenges.

Isom, acknowledging the findings from Bain & Company, admitted that the airline had moved too quickly with its new retailing strategy and did not execute it effectively. He emphasized the need for a modified approach to ensure no customer is negatively impacted by future changes. This acknowledgment marks a critical pivot in American Airlines' strategy, influenced significantly by the consulting firm's insights.

Moving forward, American Airlines plans to halt a contentious initiative that would limit AAdvantage miles and loyalty points for trips purchased through specific channels. This decision, set to take effect next week, had caused considerable frustration among travel managers. The airline’s retraction of this policy is seen as a step towards mending relationships with its corporate clients and stabilizing its revenue streams.

The consulting firm’s report played a crucial role in highlighting the strategic missteps and the need for a more balanced approach in American Airlines' sales and distribution strategies. Bain & Company’s analysis and recommendations have driven the airline to reassess its strategies and ensure a more customer-centric approach moving forward.

Read more here.

📈Show me the data📈

It drives us CRAZY when you post results from a survey and you don’t add how many people responded… for all we know this was a survey of 30 people!

💼 Exit opps 💼

We’ll plan to share a few opportunities that we see that seem interesting for someone with a consulting background. Focus on remote roles or roles in big US metros.

• [NEW] Placer.ai Strategy & Operations Senior Manager, SaaS, Remote, ~6+ years of consulting experience

• [NEW] Headway Strategy & Ops Lead, Mental Health Tech, Remote, ~5 years of consulting experience

• Stubhub Strategy Associate, NYC / Hybrid, ~2-4 years of consulting experience

• PayPal Senior Strategy Associate, NYC / Hybrid, ~2-4 years of consulting experience

• ServiceNow Pricing Strategy Manager, Remote, ~3 years of consulting experience

😂Memes😂

🤑Consulting Compensation Report🤑

That’s all for now - we will circle back next week for another edition of So What? Reply directly to this email if you have feedback for how we can get better - we are always on the lookout for how to improve.

Spicy McKinsey Decks + Chance to win $100 👀

It would be crazy not to tell a few of your consulting friends about this newsletter, right?

If you get three friends to sign up, you’ll be entered into a lottery for a $100 Venmo / Zelle (1 entry per person, selected at the end of June 2024). To sweeten the deal, we’ll send you two pretty spicy McKinsey decks when you refer just one person. Use the link below to refer!