Poor capability in adapting the firm strategy and improving the firms performance during tough times.
Pros
The relative small size of the firm allows people to take on additional roles and responsibilities earlier than you would see at most firms. The transparency provided during firm wide calls does give individuals a good sense of the performance of the firm as well as what the future opportunities and changes are. Certain senior partners are extremely talented and the flat structure of the organization does allow for interaction and dialog between junior members and senior leadership. Most of the people are smart along some development and are fun to go have a drink with. the recruiting function is extremely well organized and has done a good job building the brand even if the equity isn't there.
Cons
Poor ability to leverage MBA's and people that have significant past work experience, reluctance to answer the tough questions and truly work on the most compelling issues for clients. Much of the work is still seen as discretionary by most clients. Too many young managers, that do not have fundamental business skills provided in most MBA programs, the lack of work experience also shows in many of their capabilities to manage teams and grow client relationships. Severe group thing exist when understanding how the firm is performing and how bad the problems are. The firm continues to be dominated by the New York office even though the office is only driving 1/3 of the firms revenue and 2/3 of the consultants. Offices like Texas should be given more power given the revenue they are driving. The focus of New York on only org based work is slowly killing the firm. Poor brand equity, most people will not know who it is until you mention the McKinsey link. Poor pay comparison from the manager level upward expect to take home 70%-80% of what you would take home at (BCG, McKinsey,Bain) the entry salary is a gimmick to entice top tier talent. There is not an active Alumni network to help place people when Up or Out occurs, most Alums want nothing to do with the firm.