The McKinsey Way Book Summary for People in a Hurry

mckinsey way the most famous mainstream book about management consulting is the book insightful yeah do i like it even though the volume of lessons and insights is off the charts the book is long unstructured and difficult to follow at times so if you're short on time and no need to read the whole 180 pager spend a comfortable 12 minutes here and you will comprehend even more than those people reading the whole thing because i did commit a crime of reorganizing the content and inserted supporting insights here and there so let's get started [Music] part one the mckinsey way of thinking about business problems in other words the mckinsey problem-solving methodology the mckinsey problem solving process can be summarized in the following five steps step one define the problem every consulting project revolves around a problem but the problem is not always the problem one symptom may have different causes and we as doctors should never rely on the patient to diagnose it for example somebody can come to you with chest pain but chest pain is just a symptom of other potentially bigger problems so always dig deeper get facts ask questions poke around challenge the client until you find the real problem and only then you're ready for the next step step two know that you need to find the root cause don't jump straight to the solution because you might just be fixing the symptoms the problem will come back if the root cause is not properly dealt with step three we find the root cause through a hypothesis driven process meaning that we make educated guesses of possible root causes a b and c and test those with data aka facts that's why people sometimes call this a fact-based process step four a hypothesis-driven process may take forever as there are millions of possible root causes so we need a system called an issue tree to break down and structure the analysis we test hypotheses from the top to the bottom of the issue tree a top-down fashion these issue trees need to be missy see this video for an in-depth explanation of what the heck that means to do that with less hustle we use previously developed issue tree templates aka frameworks step five when the root causes are identified consultants propose solutions targeting them directly a few notes when using this methodology number one don't force the facts to say what you want when you propose or work extensively with the running hypothesis it's easy to get emotionally attached and turn the problem solving process into a proving exercise so keep an open mind and listen to what the data have to say number two let the hypothesis come to you naturally you will not be able to form an initial hypothesis every single time clients may not even know their problems the scope of the project is often large and vague so just dive in gather facts conduct analyses and the hypothesis will show themselves naturally number three don't reinvent the wheel business problems often resemble each other more than they differ with suitable techniques you can apply what you and the firm learned from other projects after all one of the values consulting firms bring is to provide the best practice what the top players in the game are doing number four make sure your solution fits your client the most brilliant solution is useless without proper implementation so know your clients weaknesses strengths and capabilities and tailor your solutions accordingly number five be mindful of politics there are always politics and projects many times mckinsey gets involved in fights between corporate factions this creates friction that prevents you from doing your job late data rejected interviews etc so think about how your solution affects the players in an organization and always build a consensus along the way if consensus requires you to change your solution try to compromise it's no good devising the ideal solution if the client refuses to accept it part two the mckinsey way of working to solve business problems in other words the logistics of how a mckinsey project works watch this video on how mckenzie is organized as a company and the insights from this part will shine much better 2.1 selling a study or project mckinsey typically does not sell the firm does marketing through a consulting stream of books articles and scholarly journals like the mckinsey quarterly etc the firm also generates quite some coverage by journalists these publications help mckinsey partners build and nurture a vast network of informal contacts with potential clients and when a problem arises the client knows who to contact 2.2 assembling a team almost all projects need a full time team of consultants typically the process goes like this the ed aka the project owner signs a contract with the client the ed hires an em from within the mckinsey network from any of the offices aka the project ceo the em then hires a group of staff consisting of bas aka business analysts and associates it's solely the em's responsibility to keep the team happy and functional mckinsey projects have a few common practices to do so number one is the monthly team bonding number two is team temperature aka morale weekly survey 2.3 the hierarchy the chain of command in mckinsey is very clear and strict so is the responsibility funnel in the ed's eyes the em is responsible for everything in the project and the em's eyes the ba is responsible for everything within the assigned work stream even when a ba messes things up to the ed it's not the ba's fault but the ems part three the mckinsey way of selling solutions in other words insights into the actual work of consultants watch this video on what a consultant does in an actual project then the insights part from this will be a lot easier to grasp now here's some of the highlights of a typical consultant's work and how to do them well 3.1 making presentations aka the final deliverable documents most consultants spend a big portion of their time making presentations often in powerpoint utilize the support team keep it structured from top to bottom from end to end note that there are diminishing marginal returns for your effort meaning that the last miles toward perfection are always much harder than the beginning so resist the temptation to tweak your presentation at the last minute try to assess its gain versus those of a good night's sleep for you and the supporting cast 3.2 visualizing data with charts and exhibits we subconsciously admire the people who talk in sophisticated language so we make complex charts however simple and easy to follow charts go a long way in consulting charts are just a means of getting your message across not a phd project also don't forget to write clear chart titles list out units of measurement in all axes mark legends and side notes and provide data sources 3.3 managing internal communications rule a over communication is always better keep that information flowing make sure that your team is up to date with at least the broad outlines of your work stream and your boss is up to date with your team's progress there are many channels for this email voicemail messaging small talks during cigarette breaks meetings etc rule b keep your communication brief yet comprehensive and structured rule c look over your shoulder always you never know who is listening remember that your client's confidentiality is a must 3.4 working with clients this is a big one as the true hierarchy of mckinsey is client firm and then you the client is your biggest boss there are many tips on client management which we'll talk about in a moment but the general principle is to bring the client to your side you never win by opposing the client remind them about the mutual benefits do it every day some of the client members can be liabilities there are two types of them the merely useless and even worse the hostile ones with both types the number one option is to subtly trade them out of your realm when that's not possible because some forces may want them there the next best option is to play ignorant leak out information only with the right secret audience no matter what engage the client member in the process the more they feel everybody is in the same boat the more they will support you you should also get buy-in throughout the organization along with the process every important party has to agree with you ideally the final document has already been discussed many times through many rounds the clients before the official presentation 3.5 doing research don't reinvent the wheel whatever you're doing chances are that someone somewhere has done something similar already building upon someone's work is the best way to save time and energy while achieving the highest standard besides here are some research tips start with the annual report all public companies have them available on their website look for abnormal patterns things that are especially good or bad that's where all the insights lie last but not least look for the best practice find out what the best performers in the field are doing and learn from them 3.6 conducting interviews this is one of the most effective ways to gather qualitative facts during a project you'll find yourself interviewing multiple industry and function experts as well as key client leaders here are a few tips be prepared know exactly what you want to get out of it know as much as you can about the interviewee write an interview brief for yourself is not a bad idea if possible have the interviewer's boss set up the meeting start with some general and open-ended questions then move on to specific ones let the content flow naturally sometimes it's useful to use an indirect style take time to make the interviewee comfortable with you and the interview process include some questions you know the answer to this gives insights into the interviewee's style knowledge and honesty don't ask too much focus on what you really need but you prioritize in the interview brief listen and let the interviewee know you are doing so paraphrase what you hear in your own words confirm whether you understand correctly this also gives chances for the interviewee to add or amplify important points near the end use this last trick to flesh out any possible missing insights is there anything else you would like to tell or any question i forgot to ask adopt the columbo tactic wait until a day or two passes then drop by the interviewee's office i was just passing by and remembered a question i forgot to ask this is a less threatening way to keep the conversation going lastly always write a thank you note a short and sincere one always does the job 3.7 brainstorming and mckinsey in mckinsey we often use the word problem solving interchangeably with brainstorming sessions it's a very topic focused meeting within mckinsey teams consisting of the consultant in charge the eem and sometimes even the ed and experts before the session prepare and advance as much supporting data as possible it will come in handy throughout the process inside the white room start with a tabula rasa a clean slate when you get your team into the room leave your preconceptions at the door bring in only the facts and find new ways of looking at them part 4 surviving in mckinsey in other words how to excel as a junior consultant disclaimer some insights are clearly about part 4 and i don't know why the author left them randomly throughout the book so i pulled some of them into the section where they should belong tip one find your own mentor at mckinsey every consultant is officially assigned a mentor who may not be in the same office how much you benefit from the official mentor is pretty much a matter of luck if you want great guidance you have to go out and get your own get a few too don't stick to just one tip two survive the road business travel may take a toll on your health relationships and sanity how do you deal with it look at business travel as an adventure and act like a tourist do proper planning these simple logistics steps can make a big difference lastly treat everyone with tremendous respect trip three have a list of items to bring when traveling here is the list categorized into clothing tools personal care items on organizing tools and diversions please see the link in the description for the full list tip 4 treat your assistant well having a good assistant is a lifeline treat them well be clear about what you want give them room to grow take time to train them well answering their questions and showing them the ropes tip 5 if you want a life lay down some rules things like make one day a week to be completely free of work both physically and mentally tell your boss about it he or she will respect it and so should you don't take work home when you are home you are home plan long head especially when you travel tip 6 the 80 20 rule 80 of the wealth is owned by just 20 percent of the population 80 of the output can be produced by 20 of the effort 20 of the problems can cause 80 percent of the trouble so if you want to save time and effort always trying to find that 20 and act on it tip 7 don't boil the ocean if you don't take shortcuts there's simply too much to do so don't try to analyze everything be selective find the key drivers focus on the core problem then apply an analysis this helps avoid going down blind alleys and boiling the ocean tip 8 the elevator test concise communication is crucial in consulting anytime the em asks you for your work stream status you have to be able to give him a 30 second summary short yet insightful this skill takes practice try doing it every day in various contexts tip 9 pluck the low hanging fruit solving only part of the problem can still mean increased profits those little wins help you and your customers try to see such opportunities and grab them first tip eight hit singles get your job and only your job done don't try to do the work of the whole team it's impossible to do everything yourself all the time even if you manage to pull it off once you raise unrealistic expectations and once you fail it's difficult to gain back your credibility tip 11 look at the big picture when you're feeling swamped take a step back figure out what you are trying to achieve and then look at what you are doing does this really matter probably not all those troubles will go away tip 12 just say i don't know the firm pounds the concept of professional integrity honesty if you don't know something just say i don't know in an empowering fashion admitting that is a lot less costly than bluffing part five life after mckinsey the firm leaves its alumni with vivid memories and lessons here's a sampling hit the link in the description for more structure structure structure misi misumi hypothesis driven hypothesis driven hypothesis driven the quality of the people in the corporate world the average caliber employee is far below mckinsey's least intelligent what stays with me is the rigorous standard of information and analysis the proving and double proving of every recommendation combined with a high standard of communication both to clients and within the firm when faced with an amorphous situation apply structure to it execution and implementation are the keys a blue book is just a blue book unless you do something with it getting things done is the most important thing so there you have it the legendary mckinsey way in 12 minutes did you read the book what did you think about it are there any important insights you like to highlight more leave them in the comments section at management consulting prep we believe everybody can make it to consulting are you a believer

Channel: MConsulting Prep

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Keywords: #McKinsey, #McKinseyway

Id: NFzYdXwtwxk

Length: 14min 57sec (897 seconds)

Published: Thu Jun 10 2021