the mckinsey way "how consulting company works"
DESCRIPTION
Presentation on book "The Mckinsey Way" I have tried to cover key points described in book on How Mckinsey manages the company and culture of the organization.TRANSCRIPT
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”