THE McKINSEY WAY

Agenda

1. Introduction to The Mckinsey Way

2. PART 1: The McKinsey Way of Thinking1. Building the solution2. Developing the approach3. 80:20 and other rules

The McKinsey Way• The world's most recognized consulting brand• 1923• 84 offices• 89 countries• 7000 professionals• Consulting most of the fortune 500 companies.• 90% of governments have consulted them• Top CEO’s and authors emerge from the FIRM

The McKinsey Way

• All assignments or projects known as Engagements and customers as Clients

• Associate: Entry - Level• SEM: Senior engagement manager.• ED: Engagement Directors (Equity Partners)

Building the solution

• Fact based:– Facts are friendly – Don’t fear the facts.– Facts compensate for lack of gut instincts– Facts bridge credibility gap

• Be MECE: (Mutually exclusive, collectively exhaustive) Heading for problems.– Neither fewer than 2 nor more than five.

Hypothesis driven

• Defining the initial hypothesis:– Develop road map.

• Generating the initial hypothesis:– Facts and structures.

• Testing the initial Hypothesis: Team work

Issue TreeIncrease sales

Change sales strategy

Sales force Organization

Sales force skill base

Promotion strategy

Improve Marketing Strategy

Product quality

Packaging

Consumer Advertising Strategy

Reduce Unit Cost

Raw Materials sourcing

Production Process

Distribution System

Developing An Approach

• The problem is not always the problem• Don’t reinvent the wheel

– Most problems match each other than they differ.

• But every client is unique (Customized solution)– Check with data and fact

• Don’t make the facts fit your solution

• Make sure your solution fits your client• Sometimes you have to let the solution

come to you.– Don’t panic if your experience not helping you

to make IH.– Facts and analysis bring it.

Developing An Approach

80/20 and other Rules

• 8o% sales -20% sales force• 80% orders – 20% customers• 80% secretarial time – 20% work

Other Rules

• Don’t Boil the ocean• Find the key drivers (Focus) • The elevator Test: 30 seconds • Pluck the Low – Hanging fruit: small

victories.• Make a chart every day.

Other Rules

• Hit singles: Don’t try to do everything.– Impossible to do everything yourself all the

time.– If you manage it once, You raise unrealistic

expectations– Once you fail to meet expectations, it is

difficult to regain credibility.

Other Rules

• Look at the big picture:– How does doing this will solve the problem?– Is it the most important thing you could be

doing right now?– If it’s not helping, why are you doing it?

• Just say, “I Don’t Know”