THE MCKINSEY MIND

By Ethan M. Rashiel and Paul N. Friga

1. ABOUT PROBLEM SOLVING PROCESS

2. FRAMING THE PROBLEM

STRUCTURE
a. The McKinsey Way
- Feel free to be MECE – separating problem into pieces in structured way, means
non-overlapping and all relevant issues is being adressed;
- Don’t reinvent the wheel – Look for previous works, frameworks, best practices,
and experiences;
- Every client is unique.
b. Lesson Learned
- Without structure, your ideas won’t stand up;
- Use structure to strengthen your thinking.
c. Implementation
- Ask: What is the problem? What are its dimensions? What are we going to do?;
- Reduced a complex problem into smaller and simpler problems that can be solved
individually;
- Identify the key drivers of the problem;
- Use logic tree.
 HYPOTESIS
a. The McKinsey Way
- Solve the problem at the first meeting – (1) Generate initial hypotesis based on
limited facts, (2) figure out which analysis you have to perform, use the issue tree;
- Proper prior preparation – Pre-brainstrorming with adaquate preparation;
- In a white room – Brainstroming process;
- The problem is not always the problem – Dig deeper, ask questions, and get facts
then decide whether it’s a real problem.
b. Lesson Learned
- An initial hypothesis will save you time – focus on the issues that you can prove
and disaprove;
- An initial hypothesis will make your decision making more effective – allows you
to make multiple options quickly.
c. Implementation
- Take what you know, combine with your gut, and use the most likely answers;
- The Quick Dirty Test: what assumptions are you making that need to be true in
order for your hypothesis to be true? If any of these assumptions is false, then the
hypothesis is false.
3. DESIGNING THE ANALYSIS
a. The McKinsey Way
- Find Key Drivers – Focus on the factors most affect the problem;
- Look at the Big Picture – Figure out what you’re trying to achieve. If it isn’t get
you towards your goal, its waste of time;
- Don’t boil the ocean – The analysis have to add significant value to the problem-
solving process, otherwise it’s waste of time;
- Let the Solution comes to you – If you can’t get the hypotesis let the solution
comes.
b. Lesson Learned
- Let the hypotesis determined your analysis;
- Get the analytical process right – (1) Avoid the analysis that don’t relate to your
hypotesis, (2) figure out which analysis give you a quick win;
- Forget about absolute precision;
- Triangulate around the tough problems – Find the solution by connecting two
known points;
 c. Implementation
- Your initial hypotesis as the answer;
- The analyses that must be done to prove or disprove that hypothesis, in order of
priority
- The data necessary to perform the analysis
- The likely sources of the data (e.g., Census data, focus groups, interviews)
- A brief description of the likely end product of each analysis
- The person responsible for each end product (you or a member of your team)
- The due date for each end product

4. GATHERING THE DATA

RESEARCH STRATEGIES AND TOOLS
a. The McKinsey Way
- Facts are friendly;
- Don’t accept “I have no Idea” - Dig deeper, rephrase the question;
- Specific research tips: (1) start with the annual report, (2) look for outliers, and (3)
look for best practices.
b. Lesson Learned
- Diagnose the data orientation of your organization;
- Demonstrate the power of good facts;
 - Build the proper infrastructure.
c. Implementation Guide
- Be Fact-based.
INTERVIEWING
a. The McKinsey Way
- Be prepared: write an interview guide - Make three/four most important question;
Before they leave, ask “Is there anything I forgot to ask?”;
- When conducting interviews, listen and guide – (1) Active listening—nods,
interjections, “uh-huh, uh-huh”, and use silence, (2) use positive body language,
and (3) keep the on track;
- Seven tips for successful interviews - (1) Have boss set up the meeting, (2)
Interview in pairs, (3) Listen, don’t lead, (4) Paraphrase, paraphrase, paraphrase,
(5) Use the indirect approach, (6) Don’t ask for too much, (7) the Columbo tactic.
- Don’t leave the interviewee naked – explain the positive impact of what they gave
and give them quid pro quo;
- Difficult interviews – be soldier;
- Always write a thank-you note.
b. Lesson Learned
- Structure your interviews - Make three/four most important question;
- Interviewing is about listening – listen and use body language;
- Be sensitive – begin with less sensitive issue.
c. Implementation
- Pre-interview communication - interview guide;
- Post interview communication – confirm what you heard and ensure you
understood.
- Sensitive issue – Start slowly and gently, start with the big picture to the
particulars.
KNOWLEDGE MANAGEMENT
a. The McKinsey Way
- Don’t reinvent the wheel - Look for previous works, frameworks, best practices,
and experiences;
b. Lesson Learned
- Knowledge Management - taking advantage of what is known to maximize the
firm’s value;
 - Culture - Develop a rapid-response culture;
- Technology/Knowledge - Acquire external knowledge;
- Infrastructure - Control the quality of your input: garbage in, garbage out.
c. Implementation
5. INTERPRETING THE RESULT
UNDERSTANDING THE DATA
a. The McKisey Way
- 80/20;
- Make a Chart Everday – “What are the most important thing I learn today?”;
- Don’t Make Facts fit your solution - If the facts contradict your hypothesis,
change your hypothesis.
b. Lesson Learned
- Always ask, “What’s the so what?” - What does it tell us, and how is that useful?
What recommendation does it lead to?;
- Perform sanity checks - ask a few simple question to make sure that the
recommendation is feasible and make impact;
- Remember that there are limits to analysis – draw a conclussion from the analysis.
c. Implementation Guide
GENERATING THE END PRODUCT
a. The McKinsey Way
- Make sure the solution fits your client – It’s useless if you’re client can’t
implement it.
b. Lesson Learned
- See through your client’s eyes – use CEO focus as a touchstone to make
recommendation; How large will the payoff be? Is it large enough to justify the
required commitment of time, energy, and resources? How does it compare to the
other recommendations you make?;
- Respect the limits of your client’s abilities.
c. Implementation
- Make the client understand your message;
- The recommendation should’ve add value to the client.
6. PRESENTING THE IDEAS
STRUCTURE
 a. The McKinsey Way
- Be structured – Logical and easy to follow;
- The elevator test;
- Keep it simple – one message per chart.
b. Lesson Learned
- Support your ideas with solid structure – the hypotesis.
c. Implementation Guide
- First slide - answer to the elevator test;
- A solid structure: your initial hypothesis;
- Following - MECE
- Correction - rethink the logic of your hypothesis if the presentation doesn’t make
sense;
- Sources – present sources of data.
BUY-IN
a. The McKinsey Way
- Prewire everthing – walk through people informing the findings.
b. Lesson Learned
- Avoid surprises;
- Tailor your presentation to your audience – formal v. informal, large presentation
v. intimate conversation, text-based v. visual, ect.
c. Implementation
- Difference – highlight the different aspect to other people, the structure still.
7. MANAGING YOUR TEAM
SELECTION
a. The McKinsey Way
- Getting the mix right – intellect, experience, and interpersonal skills; meet in
person;
- Recruiting the McKinsey-style.
b. Lesson Learned
- Consider not just demonstrated ability, but potential ability;
- Appreciate the value of diversity – value their experience;
- Apply structure to recruiting efforts.
c. Implementation
- Ask: Whom should we hire? And how should we hire them?
 - Ask: What is the most important task that this person will be responsible for?
COMMUNICATION
a. The McKinsey Way
- Keep the information flowing
b. Lesson Learned
- Listen more;
- Choose the words, tone, ect carefully to different people;
- Overcommunication is better than undercommunication.
c. Implementation Guide
- First, formalize listening training;
- Second, launch a personality test and training.
BONDING
a. The McKinsey Way
- Take your team’s temperature to maintain morale;
- A little team bonding goes a long way;
b. Lesson Learned
- Spend time together (but not too much).
- Reward well.
c. Implementation Guide
- Create culture and resources for teams
DEVELOPMENT
a. The McKinsey Way
b. Lesson Learned
- Set high expectations;
- Evaluate regularly, and make it balanced;
c. Implementation Guide
- Identify your organizational objectives;
- communicate the expectations to employees;
- Performance assessment - objective, based on expectations, and account only for
events that were within the control of the person you are mentoring;
- Decide the frequency and type of feedback.
8. MANAGING YOUR CLIENT
OBTAINING CLIENTS
a. The McKinsey Way
 - How to sell without selling – build reputation, precedes your name before meet;
- Be careful what you promise - balance promise with capability;
b. Lesson Learned
- Identify the client – know their agenda and create balance;
- Create a pull, rather than a push, demand – let your name precedes you.
c. Implementation
MANTAINING CLIENTS
a. The McKinsey Way
- Engage the client in the process – keep them inform;
- Always look over your shoulder;
- Keep the client team on your side;
- Learn to deal with liability client team members;
- Pluck the low-hanging fruit – get the easy win;
- Get buy-in throughout the organization – look buy in.
b. Lesson Learned
- Create involvement opportunities
c. Impelementation.
RETAINING CLIENTS
a. The McKinsey Way
- Be rigorous about implementation – what to do to make this work, do it.
b. Lesson Learned
- Share and then transfer responsibility – cover from behind;
- Make the client a hero.
c. Implementation Guide
- Pluck low-hanging fruit with a pilot program – get the easy wins;
- Control the process – be clear about who division of labours.
9. MANAGING YOURSELF
YOUR PROFESSIONAL LIFE
a. The McKinsey Way
- Find your own mentor;
- Hit singles – just do what you supposed to do, and get it right;
- Make your boss look good;
- An aggressive strategy for managing hierarchy;
- A good assistant is a lifeline.
 b. Lesson Learned
- Delegate around your limitations;
- Make the most of your network – don’t lose touch with people, be loyal to them.
c. Implementation
YOUR PERSONAL LIFE
a. The McKinsey Way
- Surviving on the road;
- If you want a life, lay down some rules;
b. Lesson Learned
- Respect your time;
- Perform sanity checks;
- Share the load.
10. CONCLUSSION
a. The goal of problem solving is, after all, to uncover the truth and communicate it.