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The McKinsey WayEthan M. Rasiel

Gaurav Rathi (09016)

Priyadarshini N (09035)

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2

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Agenda

The McKinsey way

Problem solving process

The Toyota way

Hypothesis testing

0/20 r!le

"n#ian e$amples

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McKinsey & Company

&lobal management cons!lting (irm i#ely recogni*e# as a lea#er +ne o( the most prestigio!s (irms in the

management cons!lting in#!stry ,-00 cons!ltants in 90 cons!lting

o((ices across .0 co!ntries

ompetes most #irectly with ostonons!lting &ro!p &), oo* ompany an# ain ompany onclient engagements

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The McKinsey Way

The McKinsey ay o( thining abo!t

problems, their way o( woring to

solve these an# o( co!rse how to

sell the sol!tion

4ach pro5ect is calle# an

engagement

Process o( problem solving into

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Problem solving process

8tep 1 :rame the problem

!il# the problem base# on (acts

8tart with the hypothesis

8tep 2 ;pproach to the problem

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Problem solving process- Contd

8tep 3 Team or ;ssemble yo!r team with the right mi$ o(

members

ring it together

"nteract with yo!r client

rainstorm

8tep % 8elling yo!r sol!tions Presentations

e crisp an# clear

Maintain on(i#entiality

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The Toyota Way

Direct Cause

Cause

Cause

Cause

Cause

1. Initial Problem Perception(large, Vague, Complicated Problem)

2. Clarify the Problem

The Real Problem

3. LocateArea/Point

of Caue

P!C

"rap the

#ituation

CaueIn$eti%ation

Why?

Why?

Why?

Why?

Why?

&aic Caue an' (ffectIn$eti%ation

). *i$e +,- hy In$eti%ation!f Root Caue

Root Caue

,. Countermeaure

0. ($aluate

. #tan'ar'ie

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ypothesis testing

"mprove the =!ality o( process

>ses statistical metho# lie

hypothesis testing

8i$ sigma hypothesis

Testing by vario!s tests s!ch as chi6

s=!are etc

H?, ipro

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!"#$" R%le

;"@T4? an# other telecom company

0A o( their reven!e come (rom

20A o( c!stomers

B!ite shocing b!t tr!e

@est most o( the c!stomers are

passive c!stomers

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!"#$" R%le Contd'

They !se services 5!st (or incoming

(acility or (ew calls

This r!le helps the company to (orm

its strategies accor#ingly

"nvestor

0A o( his pro(it is #!e to 20A o(

stocs

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Tata Ace

Mini tr!c?a!nche# in may 200.@ob!st sales (ig!re which no one

was e$pectingompetitors

a5a5 a!to

Mahin#ra Piaggio

:orce motors

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Tata Ace Contd'

Cew mini segment

hallenge# the government policy

Price o( 3 wheelers D 1E-. lahs

Price o( Tata ;ce D 2E2.lahs to 2E3.

lahs

onverte# lot o( 3 wheelers !sers to

% wheelers !sers

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The magical idea o( TataAce

&irish agh, a 3%6year6ol# #ivisional

manager, #esigne# ;ce

"n F!ne 200- Tata Motors has also la!nche#the passenger variant o( ;4, name#

M;&"

"n#iaGs (irst Ma$ivan 6 The Tata inger,which an entirely new plat(orm

+b5ective is to change the way an average

"n#ian travels

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)esigning Tata Ace

8tep 1

l!e print (or Tata ;ce

;nalysis o( #ata (rom maret research 8tep 2

;pproach to the ey problem areas i#enti(ie# bymaret research

8tep 3

The engineers came together to #evelop the

mo#el o( Tata ;ce Prototyping an# tooling

8tep %

atere# to the latent nee# in the maret

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1

EatHealthy,ThinkBetter

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*ritannia Mil+ Prod%cts

4ntere# into mil pro#!cts in 199-

?a!nche# with ritannia Milman

:orme# 5oint vent!re with :onterra

4$ite# (rom mil segment in 200%

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Why did they (ail,,

@ise in mil prices

Co streamline# so!rcing o( mil

Price (l!ct!ations

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Re-entry into the mil+segment

ritannia ;ctimin#

@e6entry with the la!nch o( probiotic

mil #rin

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*ritannia Actimind

ritannia "n#!stries ?t#

; vitamin (orti(ie# #rin

Mainly (or chil#ren

Help memory

"o#ine content increase mental

#evelopment

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trategy (or the re-la%nch

8tep 1 ;nalysis o( the (ail!re

The ca!ses o( (ail!re in 200% were #!e

to price (l!ct!ations an# no

streamline# so!rcing o( mil

8tep 2 ;pproach (or the re6la!nchThe ey problem areas were i#enti(ie#

along with opport!nities

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trategy (or the re-la%nch Contd'

8tep 3 8ol!tions to the problems

i#enti(ie#

?a!nch with the emerging (lavo!re# mil

pro#!cts

ater to the health nee# 8tep % Mareting ;ctimin#

?a!nch in cities in Tamil Ca#!

&iving competition to other players in the

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%mmary

McKinsey ompany

The McKinsey ay

The Toyota ay

Tata ;ce

ritannia ;ctimin#

0/20 r!le

Hypothesis testing

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ank you