Hydro-Québec confirms that this company is working on strategic states
and supply issues and innovations. Over the past six years, Crown has paid McKinsey $31 million and still has to pay $7 million for ongoing mandates.
However, experts and inside sources question the extent and significance of this working relationship. Hydro-Québec ensures that this consulting firm saves them money and that industrial secrets are well protected.
Attendance of consultants to meetings
In some files, there are McKinsey people who attend meetings all the time
says a Hydro-Quebec executive who is not authorized to speak publicly. It frustrates a lot of people.
exactly like Legault government during the pandemicThe decisions are not made by McKinsey, but the company plays a key role in the decision-making process to validate the options. It complicates the process
this director disapproves.
Oftentimes, consultants come to the same conclusion as the engineers at the beginning
This source adds. What interest?
” There is a loss of confidence and courage. Become company culture. »
Sometimes they are listened blindly
, refers to another internal source who requested anonymity. A third source is asking about him Subcontracting the expertise that the country must possess
.
Some contracts without invitations to bids
Of the $38 million in contracts awarded, $5.8 million in contracts were awarded without a call for bids, by mutual agreement. The petition method used for all files complies with the regulatory framework
Hydro-Quebec confirms.
Hydro-Québec wants to ‘challenge’
Last year, McKinsey won a $5 million contract from Hydro-Quebec to analyze the costs and significance of repair work on hydropower plants through 2024. It’s the expertise we have at home, but we seek to validate
Decisions, explains a spokesperson for the state-owned company, Maxence Huard-Lefebvre.
Internally, Hydro-Québec uses a McKinsey-inspired concept, called the Optimum Technical Solution, the goal of which is not to spend too much or too little on the project.
” It’s okay to question your practices, sometimes, and then to the challenger We wonder if we are investing the right amounts […] It can confirm that we are on the right path. »
Hydro-Québec also claims to benefit from the company’s international network, which enables it to Keep up with global best practices and then make informed decisions
.
For example, McKinsey Hydro-Québec has helped position itself in the innovation markets. We can think about battery materials and everything that is done in our research institutes
explains Maxness Howard Lefevre.
” We want to remain world leaders. This is an area that is rapidly changing everywhere. »
McKinsey advised Hydro-Québec to develop the Hilo subsidiary, which was launched in 2020, to reduce electricity consumption during peak winter periods.
Photo: getty Images / istockphoto / Cunaplus_M.Faba
Experts ask
Professor Sylvain Audet, associate member of HEC Montréal’s head of energy sector management, believes that using consultants like McKinsey can be useful, “with scarcity”, to avoid ad hoc recruitment, to analyze international practices or to validate a decision.
On the other hand, Hydro-Québec warns of the dangers of drifting.
We should avoid relying on one company, as it becomes an integral part of the operations that are part of the employees […] By neglecting the development of internal expertise
He said.
” I hope these companies are not there to influence decisions. »
Norman Musso, Scientific Director of the Trotier Energy Institute at Montreal Polytechnic
Photo: Radio Canada
For his part, Norman Mousseau, Scientific Director of the Trotier Energy Institute at the Montreal Polytechnic, Norman Mousseau, believes thatWhen it comes to planning, it’s not bad to see trends elsewhere
But he says he regrets it. Oftentimes, we use advisors to tell us what we want to hear
in order to get a “deposit”.
” This is also the role of counselors: to be able to tell you what you want to be told. And consultants are good at understanding that. Then, it is easier to justify more difficult decisions. »
More internal mandates since Sophie Brochu’s arrival
According to our sources, turnout to McKinsey has accelerated under former CEO Eric Martel as of 2016. However, the current CEO, Sophie Brochu, will be willing to turn more to in-house expertise. Since 2020, we have strengthened our in-house strategic planning team
refers to the Hydro-Québec spokesperson.
A risk to trade secrets?
McKinsey works with many clients, both public and private, who may have conflicting interests. this is The company has a habit of not disclosing who it is dealing with.
According to one of our sources at Hydro-Québec, If other McKinsey customers learn about Hydro-Quebec’s export and energy data, it could help them better bid on contracts.
.
“Yes, there is a risk” that the knowledge of the Quebec state company will be disseminated elsewhere, according to Sylvain Audet, of HEC Montreal.
” These advisors, even if they sign the confidentiality clause, if they carry out the mandate of another [client]their brain is not erased. »
Professor Odette recalls that during the meetings in which they participate, the advisors were You may have access to information not necessarily covered by confidentiality agreements
.
It’s not something we see as dangerous
replies a spokesperson for the state-owned company. Hydro-Québec’s great industrial secrets, we don’t give away to our consultants.
The interior of the Outardes-3 power plant
Photo: Radio Canada/Marie Jane Dubriel
We do not disclose confidential information externally or to third parties
confirms to McKinsey.
Mackenzie announces her expertise
The consulting company claims that its employees Pioneers in consulting in the energy sector
With 3000 states in this field worldwide since 2016.
On these projects, we work with organizations to help them define their strategy, improve their operations, and create value.
the company explains by email, specifying that it offers its customers, for example Hydro-Québec, Features, beacons, diagnostic tools and analytics
.
” We work in addition to the skills and tools of our clients on highly complex and multidisciplinary issues. »
The company gives an example The changing needs of neighboring markets
or even Best practices in managing venture capital deployments
.
The McKinsey effect around the world
This American company employs 30,000 consultants in 130 offices in 65 countries. (A new window)
It advises both private and public companies. The consulting firm was recently talked about in Quebec because of the central role it played in managing the pandemic with the Legault government.
McKinsey has advised many national governments to combat COVID-19, including the governments of the United States, the United Kingdom, Germany, Mexico… and in France, the Senate investigated (A new window) He concluded that the government outsourced crisis management.
A drop of water in spending Hydro-Québec
These amounts, although they seem large, are generally not significant.
, says Hydro-Quebec spokesman Maxence Huard-Lefebvre, who recalls that the state-owned company manages $85 billion in assets. He even claims that these advisors ultimately save him money: Its benefits are great.
Dam rehabilitation projects cost hundreds of millions of dollars each year. Hydro-Québec wants to increase the capacity of its old power plants by 2,000 megawatts to get more power.
” With the transition of energy and new technologies, everything is going so fast that all sums are reasonable to ensure that the decisions made are well thought out. »
What MacKenzie didn’t do
Hydro-Québec determines that McKinsey has not worked on an evaluation Additional needs of 100 TWh by 2050. The company did not play a role in The recent acquisition of 13 power plants in the United States Or think about the electricity tariff.
In addition, the current analysis of Quebec’s remaining hydropower potential is being carried out entirely by in-house teams, assures the state company. McKenzie confirms this: We have neither participated nor been involved in defining growth strategies for the Hydro-Québec generation fleet.
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