love to solve prob lems

approached everything looking for ways it could be better,

facts compensate for lack of gut instinct
facts bridge the credibility gap
MECE (pronounced me-see) stands for mutually exclusive, col lectively
exhaustive
the list of issues: top-line issues, Other Issues
breaking the problem into its components
Find the Key Drivers
actionable recommendation regarding each driver
key determinant of profits
If a given recommen dation is correct, what issues does it raise?
what is provable and what is not
the issue tree
prob- lem-solving map
Have you thought about all the issues? Have you considered all the drivers of the
problem? Are all your recommendations actionable and provable?
thought leader
Try to take a different approach. Ask, What if we change this? How about looking at
it this way?
make sure youre solv ing the right problemit may not be the one you were given.
the doctor will not rely on the patient to diagnose himself.
dig deeper. Get facts. Ask questions. Poke around.
symptoms mask something more serious
have the data to back you up,
Forces at Work:
External - suppliers, customers, competitors, and possible substitute products. list
all the changes occurring in each of the four categories. What impact positive or
negative
internal changes - client and the clients industry
NO COOKIE-CUTTER SOLUTIONS - That there are many similarities between business
problems does not mean that similar problems have similar solutions.

fact-based analysis
If all you have is a hammer, then every problem looks like a nail.
in 8 out of 10 pricing problems the answer turns out to be raise your prices.
be careful about blindly trusting your gut
Trust and verify.
So, even though your initial instinct may beand probably is right, take enough
time to verify your gut with facts.
Keep an open and flexible mind
adjust to the facts.
How do you avoid that trap? take an occasional step back; little reality checks; save
you from chasing down blind alleys.
useless if your client or business cant implement it. Know your client. Know the
organizations strengths, weaknesses, and capabilitieswhat management can and
cannot do.
academic ideals, business realities, limitations
As a consultant, you bear the responsibility for knowing the limitations of your
client;
Put together enough facts, combine them with some creative thinking, and you will
come up with a solution.
SOME PROBLEMS YOU JUST CANT SOLVE . . . SOLVE THEM ANYWAY
Politics - businesses are full of real people. When you look at the boxes on an
organization chart, you are really looking at people. When you move those boxes
around, you change someones life.
Sometimes change management means just that changing management.
It was a rare engagement when there wasnt at least one sector of the client
organization that did not want us there and did not want us to come up with a real
answer.
Sometimes, however, one power ful faction in an organization calls in McKinsey
against the wishes of another powerful faction.
when confronted by a problem that seems too difficult to solve.
Redefine the problem. You can tell your client that the prob lem is not X, its Y.
solving Y will add a lot of value, where as trying to wrestle with X would cost a lot of
time and resources for little result.
business judgment

Tweak your way to a solution.

it is easy to devise an optimal organization, but you usu ally have to deal with the
personnel resources that the client already has. expand your time horizon. Dont
worry about implementing your solution immediately. tweak your way to your
optimum over time.
Work through the politics. Incentives. So politics is just people acting in their
own interests.
Consensus building may require you to change your solution to make it acceptable.
Do it. Remember that politics is the art of the possi ble, and its no good devising
the ideal solution if the client refuses to accept it.
The 80/20 rule
How do I boost my profits? - Where do your profits come from?
Rather than divide up the pie more fairly, we increased the size of the pie.
80/20 is all about data. What are your sales figures by product? What is your margin
by product? How does each member of your sales team perform in terms of sales?
In terms of profits? geographical distribution.
They may mean problems but they also mean opportunities. Find the opportunities
and make the most of them.
DONT BOIL THE OCEAN Work smarter, not harder.
only enough facts.
Anything more is a waste of time and effort when both are precious commodities
dont try to analyze everything. Be selective; figure out the priorities of what you
are doing. Know when you have done enough, then stop very little return
Many factors affect your business. Focus on the most impor tant onesthe key
drivers.
When analyzing planetary motion, astronomers start by ignoring most of these
objects.* Focusing on the key drivers means drilling down to the core of the
problem,
where it will do the most good
saves you time effort
THE ELEVATOR TEST Know your solution (or your product or business) so thor
oughly that you can explain it clearly and precisely to your client (or customer or
investor) in 30 seconds. If you can do that, then you understand what youre doing
well enough to sell your solution.
CEO: Why dont you ride down in the elevator with me and tell me what youve
found out? Can you sell him your solution? Thats the elevator test

I challenged them to explain the magazine to me in 30 seconds.

How do you encapsulate six months work in 30 seconds?
If you have a lot of recommendations, stick to the three most importantthe ones
with the biggest payoffs
PLUCK THE LOW-HANGING FRUIT
opportunities arise to get an easy win, to make immediate improvements, even
before the overall problem has been solved. Seize those opportunities!
little victories boost morale added credibility; that youre on the ball and mean
business.
Giving the client something practical before the end helps reduce the pres sure on
the team.
because I had presented the findings, their opinion of me rose quite sharply and my
job became a lot easier
After the meeting, I was someone who was work ing for them to solve their
problems.
made our client more enthusiastic, our jobs easier, and our selves happier.
about satisfying your customer in a long term relationship.
let him know that he is your top priority.
show it to your boss. Dont wait!
Those little wins help you and your customers.
you learn something new every day. Put it down on paper. It will help you push your
thinking.
once you have crystalized it on the page, you wont forget it.
Later, when you are in analysis mode
You cant do everything, so dont try. Just do what youre supposed to do and get it
right.
three reasons:
Its impossible to do everything yourself all the time.
If you manage it once,
you raise unrealistic expectations from those around you.
Once you fail to
meet expectations, it is very difficult to regain credibility.
one-man show
LOOK AT THE BIG PICTURE take a mental step back
Does this really matter?

JUST SAY, I DONT KNOW - professional integrity is honesty

DONT ACCEPT I HAVE NO IDEA educated guessing
chip away at I have no idea with pointed questions make an estimate
Just as you shouldnt accept I have no idea from others, so you shouldnt accept it
from yourself,
With a bit of thinking and searching
it was considered beneath the dignity of pro fessional service firms to advertise or
solicit business.
McKinsey markets.
produces a steady stream of books and articles, extremely influential,
The McKinsey Quarterly,
lot of cov erage by journalists, experts in their fields
vast network of informal contacts
extracurricular activities such as sitting on the boards of charities, museums, and
cultural organizations address industry conferences.
Occasional meetings with former clients check up on the effects of past McKinsey
projects
share of mind
make sure that the right people know the Firm is there
make sure they know who you are trade journal Meet your competitors too
BE CAREFUL WHAT YOU PROMISE: STRUCTURING AN ENGAGEMENT
dont bite off more than you can chew. Set definite milestones that you can meet.
maximum results in the mini mum time. McKinsey bills by the hour,
balance the desires and budget constraints of the client with the limits of the team.
uncovers new problems generate new business
scope of the problem time allotted? End product, resources
skills and personalities, specific experience and skills; smartest people
rating each one on analytical ability, client management skills,
biggest mistake: taking those ratings at face value. always talks before taking
them on.
Meet them face to face. Talk to them; see whats behind the recommendations.

team-bonding activities not much team morale

important is that a team works together well
individuals feel respected feel that their ideas are respected.
Most people want to have a life, to be with their families.
would you want to take up yet more of their time? be selective with team-bond- ing
activities.
respect your teammates time the best team dinners were at lunch
client politics
Talk to your teammates. Questions, unhappy, remedial action
Teams priorities
Let your team know, explain why
Respect doesnt just mean politeness different priorities, lives outside of work
never asking some one to do something you wouldnt do or havent done yourself.
Get to know your teammates as people help you to under stand them. Share a bit
about yourself as well
which EMs to avoid
MAKE YOUR BOSS LOOK GOOD If you make your boss look good, your boss will
make you look good. Thats the quid pro quo of hierarchy
the most important person - your boss
doing your job to the best of your ability
make sure your boss knows everything you know when she needs to know it. Keep
the information flowing. Make sure your boss knows where you are, what you are
doing, and what problems you may be having. dont overload her with information.
Think about what your boss needs or wants to know.
more careful about the tone of comments.
to be a successful consul tant, you have to assert yourself.
sensitive of where the limits to others authority lie. And be ready to back down
quickly;
DONT REINVENT THE WHEEL
Maybe that person is in your organization and can answer all your questions in the
course of a phone call have seen the same problem already Your time is
valuable work smarter, not harder.
follow-up questions.

access to companys corpo rate memory

Get to know your competitors.
Tap into your industrys buzz. Whatever youre doing, chances are someone,
somewhere has done something similar. Learn from others successes and mistakes.
Leverage your valuable time and dont reinvent the wheel!
Start with the annual report
Message to Shareholders or Chairmans Remarks
Look for outliers best and worst figures Figure out why
Look for best practice best performers in the industry are doing quickest
antidote to poor performance
think creatively competitors wont tell you their secrets. Talk to other people in
the industry
some division is outperforming the rest of the company. Find out why.
implement the top performers secrets throughout your organization.
CONDUCTING INTERVIEWS
be prepared Know what youre going to ask best use of your timeand theirs
what are the questions to which you need answers?
Defining your purpose will help you put your questions in the right order and phrase
them correctly
It helps to know as much as possible about the interviewee in advance.
as a rule, an interview should start with general questions and move on to specific
ones. Dont dive right into a sensitive area like What are your respon sibilities? or
How long have you been with the company? Start with say, the industry
overall.
interviewee warm up
questions.. you might want to include some to which you know the answer On
questions of fact, will give you some insights into the interviewees honesty and/or
knowledge. For complex issues answer find out as many as possible.
ask yourself, What are the three things I most want to know by the end of the
interview? Focus
running out of time, ask the interviewee if theres anything else hed like to tell
you or any question you forgot to ask. chances are, the people you interview
know better than you do.
whos pushing which agenda

ask questions and then let them do the talking.

Keep the interview on track by breaking in when necessary.
always let the inter viewee know you are listening. verbal placeholders leaned
toward her slightlynodded took notes
Consultants are there to listen, not to talk.
the other person has a separate agenda, and needs to be kept on track can
sometimes prove difficult.
Use positive body lan guage
One final trick Let the silence hang.
Its surprisingly effective.
SEVEN TIPS FOR SUCCESSFUL INTERVIEWING
think strategically You have a goal to reach and limited time to reach it.
1. Have the interviewees boss set up the meeting.
2. Interview in pairs.
busy taking notes difficult to ask the right questions miss non verbal clues
switch roles specific knowledge different views notes corroborates them
with the other interviewer
3. Listen; dont lead
You want exhaustive answers , just enough to keep the inter view on track. Ask
open-ended questions.
in which case, youve just highlighted your lack of knowledge about her
business.
she will give you the answer, and probably in more detail than if you gave her
multiple choice
By asking the open-ended question, you get a much better result.
4. Paraphrase, paraphrase, paraphrase
Most people do not think or speak in a completely structured way. They ramble,
they digress, they jumble important facts among irrelevancies understood
them correctly also gives the interviewee a chance to add information or
amplify important points.
5. Use the indirect approach.
As if it were an interrogation rather than an interview was rattled, defensive,
refused to cooperate.
Be sensitive may feel threatened. Dont dive right into the tough questions
dance around the important issues thats OK make the interviewee
comfortable
6. Dont ask for too much.
narrow down your goals to the two or three most important questions sum
total of his knowledge
being interviewed uncomfortable experience for many
hos tile. You never know when you may want to come back to this per son for
more information, so dont shut the door.

7. Adopt the Columbo tactic.

Once the interview is over Excuse me, maam, but theres something I forgot
to ask.

DONT LEAVE THE INTERVIEWEE NAKED

makes good business sense too
you have a professional responsibility to respect the inter- viewees anxiety, to allay
it, and not to take advantage of it.
be circumspect about asking questions that may touch on deeply personal matters
your first question should probably not be So, what is it that you do, exactly?
demonstrating how the process benefits them. If you make their job more efficient,
that should benefit them.
quid pro quo if you have information that you can share with them, do so
means resist ing the temptation to use the power of the interview
no need to flash your authority
If you run into real obstruction or hostility you may have to bring your authority
into play, but not until then.
DIFFICULT INTERVIEWS
test your strength and spirit.
didnt back down dignity and strength
If you arent so favored, just remember that if the per son you are interviewing is
more senior than the person who authorized your project, you will probably have to
back down when challenged.
refuse to give you information. They wont answer your question or give you access
to relevant documents or data. When this happens, it is time to pull rank.
play hardball. If necessary, call the boss on the phone there and then.
passive-aggressive type
indirect approach finding someone else in the organization who can tell you what
you want to know.
You cant become angry or upset,
No one ever said life was fair.
ALWAYS WRITE A THANK-YOU NOTE
Its polite and professional Sometimes a little politeness goes a long way.
BRAINSTORMING

There are no dumb questions.

Never be afraid to ask why something is the way it is or is done the way its done
working through seemingly obvious or simple questions.
tip for handling a grumbler or rabble-rouser at a brainstorming session: Have the
leader or moderator stand behind him, and even touch him on the shoulder
occasionally. This lets the troublemaker know that he is being watched. If he
mutters an aside, the moderator can ask him to speak up
MAKING PRESENTATIONS
Tell em what youre going to tell em, tell em, tell em what you told em.
you want the audience to follow your presentation at your pace. Theres usually
someone in the audience who lacks the patience for this
REMEMBER THAT THERE ARE DIMINISHING MARGINAL RETURNS TO EFFORT
Dont let the best be the enemy of the good nitpicking changes no longer add
value. draw the line on changes well in advance of the meeting.
PREWIRE EVERYTHING
Walk all the players at the client through your findings before you gather them into
one room.
reached the con clusion not everyone likes surprises.
take all the relevant players in the client organization through their findings in
private. That way, there are few, if any, surprises on the big day.
the actual presentation became perfor mance art.
Not only do you have to come up with the right answer; you also have to sell that
answer to your client.
or he may come up with some fact you hadnt known about that alters your recom
mendation
refuse to accept
negotiate. If the compromise is small, make it and move on; if his demands are too
great, you will have to fig ure out a way to bypass him.
You already know what that outcome will be. Isnt it better to skip the surprise
ending?
DISPLAYING DATA WITH CHARTS
ONE MESSAGE PER CHART
The more complex a chart becomes, the less effective it is at conveying information.
lead, the caption at the top of the chart

salient information highlighted exploded pie slice arrow

source attribution
Too many will bore your audi ence. Use the absolute minimum simplicity
MANAGING INTERNAL COMMUNICATIONS
Mushroom Method of management
can operate in both directions; it is possible to keep your boss in the dark too
unproductive
At the ground level, they may be closer to events than you are. Good information
flow can help you spot emerging problems (or opportunities) faster. Always keep
your boss up to date
Team meetings agenda, leader
Frequent meetings are good, unnecessarily long ones are not.
learning by walking around.
You can gain a lot just by wandering around and talking to people, and they can
learn a lot from you. Never under estimate the value of the random fact.
boost your teams efficiency and morale, as well as your bosss peace of mind.
EFFECTIVE MESSAGE
brief, covering only the points the audience needs to know; it is thorough, covering
all the points the audi ence needs to know; and it has a structure that conveys
those points clearly to its audience.
1.Brevity,
2.Thoroughness
Tell her not only what you are doing, but what the issues are and what your
thoughts are on them. Dont just check in; its a waste of your bosss time (and
yours).
3.Structure
ALWAYS LOOK OVER YOUR SHOULDER
maintain confidentiality.
never mentioned our clients by name outside the office
sensitive, take a few basic pre cautions.
papers lying around. Lock up your desk and file cabinets
Dont take out sensitive material in public

be extra careful when sending faxes, e-mail, and voice messages: They can very
easily end up in the wrong hands.
KEEP THE CLIENT TEAM ON YOUR SIDE
Make sure that they want to help you
Key to turn their goals into our goals
Members of the client team must also realize that working with McKinsey will be a
positive experience for them.
at a minimum, theyll learn things that they would never otherwise know and that
will help them in their careers.
a chance to make real change a are experience
Team-bonding with client teams little social interaction
There are two kinds of liability members on a client team: the merely useless and
the actively hostile
try to trade the liability out of your team and get somebody better.
Work around him. Give him a discrete section of the work that he can do; make sure
it is neither critical to the project nor impossible for anyone else on the team to do.
Youll have to rely on the other members of the team pick up the slack.
actively prevented sent us down blind alleys; bad-mouthed, sabotaged
the best tactic is to trade the saboteur out of your team, but thats usually not
feasible.
Make use of their talents where you can and keep sensitive information out of their
hands when possible
what the ring leaders agenda ismaybe you can use that to your advantage
political skill and muscle
Keep your clients engaged by keeping them involved.
understand their agenda. Clients will support you only if they think your efforts
contribute to their interests.
their interests may change over time. Frequent contact and regular updates
keep your projects top of mind for them. Get on a clients calendar up front.
Schedule progress meetings with tenta tive topics;
Early wins
make them feel included in the problem-solving process. The long-run returns
much greater if your clients feel that they were involved in reaching the solution
and that they under stood it

outside consultant, you will never get credit for your best work.
truly effective, the client organization will claim it for its own.
you must get acceptance for your solution from everyone in the organization that it
affects.
What do the sales force and the production-line workers think about all this? If they
dont like your ideas, if they put up a fight, then your solu tion will not be
implemented.
After youve presented to the board, present to middle-level managers. .. have dayto-day responsibility for implementing Dont neglect the people on the line
Tailor your approach to your audience. Dont make the same presentation to, say,
the fleet drivers as you would to the CEO. At the same time, respect your audience.
Explain what is being done and why. Show people the entire picture. Let them know
how their jobs fit into the organization as a whole. Theyre not stupid; theyll
understand. Treat them with respect (remember, a lot of the time they dont get
any)
BE RIGOROUS ABOUT IMPLEMENTATION
Implementing recommendations for change is a big subject
you must operate according to a plan. Your implementation plan should be specific
about what will happen and whenat the lowest possible level of detail. Dont just
write: We must reorganize the widget sales force
State what needs to be done, and when it needs to be done by, at such a level of
detail and clarity that a fool can under stand it.
Make specific people responsible for implementing the solu tion
Make sure people have the skills necessary to get the job done. Enforce your
deadlines and dont allow exceptions unless absolutely necessary.
The right point person make sure you pick someone who can kick butt and take
names.
If you wanted guidance, you had to go out and get it.
Find someone senior to you whose abilities and opinion you respect; seek out the
mentors advice. Many people like to give advice and are happy to dispense it when
asked
Dont go to the well too often, however; you dont want to become a pest.
importance of maintain ing a proper attitude.
Try to look on business travel as an adventure
Act like a tourist. Make the most of where you are
enabled me to meet people whom I would never otherwise have met.

Find a way to enter tain yourself outside of work. Find colleagues, client team
members, or maybe old friends from business school or college
Treat everyone with tremendous respect
you realize and want to help those who show respect for them. It also keeps your
stress level downits easier to be friendly than frustrated
Assistant: Treat them well, be clear about what you want, and give them room to
grow.
you will still get better work out of him if you treat him with respect
Answering her questions and showing her the ropes will benefit you too
knew how to structure problems business judgment knew the implications of
his solutions cases
how well the interviewee can think about a problem, rather than how correctly she
answers it.
break ing the problem into its component pieces, asking relevant ques tions, and
making reasonable assumptions when necessary.
how to make New York a better place I could have said a lot of things but I
concen trated on breaking the problem into its components. It worked.
What matters is not the numbers, but the method you use to reach them.
McKinsey consultants work in teams, so personality counts too. Did I really want to
work with this person? fit with the interviewer
Be of above average intelligence, possess a record of academic achievement at a
good college and a top business school, show evidence of achievement in all
previous jobs, and demonstrate extraordinary analytical ability.
IF YOU WANT A LIFE, LAY DOWN SOME RULES
Make one day a week off-limits.
Keep your mind off work and relax a bit.
Dont take work home. If you need to stay at the office for another hour, thats
better
half-life of a class of new associates is about two years
Preserve your integrity at all times. you must maintain your professional
objectivity humility
better prepared
every problem has a solution; it may not be perfect, but it will allow me to take
actions that are directionally correct.

there is nothing new under the sun. Whatever youre doing, someone else has done
it beforefind that person.
No stars, just meritocracy.
Execution and implementation are the key.
Getting things done is the most important thing.

THE MCKINSEY MIND:

defining the boundaries of a problem
Every client is unique.
MECE way, opening out all the possibilities and then considering or rejecting them
inde- pendently,
MECE issue tree
We framed the issue very clearly: What is the problem? What are its dimensions?
way to increase our chances of success. var- ious issues stemming from each
problem: is it achievable, do we have the resources financially, congressional
support, political ramifications
prioritize your options.
defin- ing the scope of the problem see all its ramifi- cations links to other
factors and the whole scope of consequences. then disregard unimportant factor
logic tree
there may be several ways to break apart a problem. Which one you choose will
affect the way you view the problem and can either reveal or obscure critical issues
for your team
organizational hier- archy (by business unit),
from a functional perspective
Just make sure your logic tree is MECE
sources of revenue and profit? Where is the money going to come from?
What is the economic benefit?
two-by-two matrices
eventual audience. Tailor your presentation
frameworks work great internally outside, careful about their use
a systematic checklist key issues use the concepts from the frame- work to
generate new ideas that help solve the problem at hand.

Can you come up with a dif- ferent groupingsay, by responsibilitythat is still

MECE?
Proper prior preparation Brainstorming. Be prepared to learn.
the temptation of taking the clients diagnosis of his problem at face value.
Symptoms
dig deeper, ask questions, and get the facts. A little skepticism early on
you will be doing your client a service by getting to the real problem, even if,
sometimes, your client doesnt like it.
deductive approach
the whole analysis paralysis
OK, realistically, what do we know. What are our guesstimates about them?
focus only on those issues that can prove or disprove it. Prioritizing
at the start of the problem-solving process, you have to rely less on facts
think about what the most likely answers are. its a good starting point.
Quick and Dirty Test (QDT) of your hypothesis
what assumptions If any of these assumptions is false, then the hypothesis is
false. knock out false hypotheses
what analysis do I need to do to support/ reject the investment and to dimension
the risks?
can it be done? What needs to be true for that option to work? head count?
per-worker produc- tivity is low relative to the industry. benchmarking study
you dont need to investi- gate everything to the same depth
Being able to figure out quickly that that option is never going to make you any
money is critical.
Will it actually save money? Does it require special skills? Do we have those skills in
the organization? Quality Can we implement the change in the first place?
top-line issues,
subsidiary questions
raises additional questions that must be answered
In many cases time and resource constraints dont allow for lots of analysis.
not experienced, second opinion, fact-based analytical support
Find the key drivers.

Look at the big picture: Goal figure out what youre trying to achieve. how the
task fits into the big picture. Is it moving your team toward its goal? If it isnt, its a
waste of time
Figure out which analyses you need in order to prove (or disprove) your point. Do
them, then move on.
intuition and data complement each other. quality over quantity.
under- stand what the end product is likely to look like. It keeps you from doing a
bunch of analysis that is interesting, intellec- tually stimulating, but not very
relevant.
if these analyses arent working to prove or disprove your hypothesis, then they are
just that: playing around.
limited time, limited resources. figure out which analyses are indispensable. what
not to do. letting your hypothesis determine your analysis: avoiding analyses that
dont relate to your hypothesis.
Look for the path of least resistance by being hypothesis dri- ven; make
assumptions and get answers that are direction-ally correct. There is never
enough data or enough time,
figure out which analyses are quick winseasy to complete and likely to make a
major contri- bution to proving or refuting the initial hypothesis. pluck the lowhanging fruit.
back-of-the-envelope analysis ballpark
looked for analogous situations merely upper and lower bounds
IMPLEMENTATION GUIDANCE
For each issue or subissue, you should list the following elements:

Your initial hypothesis as to 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

schematic diagram
sometimes the results of one analysis will make a whole range of subsequent
analyses redun- dant, thus saving you the trouble of actually performing them.
domi- nant questions first.
prune your analysis plan aggressively.

Lets face it, information availability is not the issue these days.
there is no shortage of data or information. In fact, were inundated by it. The difficulty is pinpointing the useful bits.
you want to get the most impor- tant information as quickly as possible
Dont accept I have no idea. you shouldnt accept it from yourself
learn from a competitor or other top-performing organization, even one in a
different industry.
Diagnose the data orientation of your organization.
basis of their choices with refer- ence to evidence?
*Sanitized reports are client documents that have been modified for sharing within
the Firm.
remember, quality over quantity.
identify the potential source of the information (document or person).
An interview guide is simply a written list of the questions you want to ask,
arranged in the order you expect to ask them.
be brief.. three or four most important. get those answered in the limited time you
have with the interviewee;
favorite question: Is there anything I forgot to ask?
Seven tips for successful interviews.
1. Have the interviewees boss set up the meeting. 2. Interview in pairs. 3. Listen,
dont lead. 4. Paraphrase, paraphrase, paraphrase. 5. Use the indirect approach. 6.
Dont ask for too much. 7. Adopt the Columbo tactic.
What is the most important lesson that you learned at McKinsey? How does it affect
the way you work in your current position?
Is there a question about McKinsey weve forgotten to ask? Whats your answer?
If we use any of the stories you send us in the book, we will send you a signed copy;
we will also mention you in the acknowledgments unless you request anonymity.
look, listen, and learn tour to test any hypotheses.
Taking the time early on to listen to people has proved invaluable.
increase the amount of time you spend listening (to the right people and on the
right subjects), and listen in an active manner.
interview, the beginning matters.
identify what may be sensitive.

agendas conflict anticipate and plan for such situations

avoid issues that may cause unnecessary friction.
document what you learn
pre- interview communication and the post-interview follow-up.
You should send the interview guide (or a version of it) to the interviewee well
ahead of the interview. prepare responses and identify additional support.
appreciate the courtesy, most of us dont like surprises.
bend this rule, in politically charged situ- ations, you might not want to allow for
preparation that may facil-itate resistance or deception.
follow-up:
After the interview, we document our findings and give that as feedback to the
interviewee to make sure we understood him properly . . . and to correct any
misunderstandings.
Icebreaker but avoid platitudes like Nice weather, isnt it? Rather, try to
empathize with the interviewee and what she does. circum- stances may require a
different approach,
KNOWLEDGE MANAGEMENT (KM)
know what database. know who database.
Develop a rapid-response culture.
Perform a KM audit a strong KM culture
INTERPRETING THE RESULTS
hard part: figuring out what it all means.
generate insights that will add value
They pay for advice that will add value end product
its research, analy- sis, and insight development. insights that had great client
impact.
Vilfredo Pareto.
two parallel goals: you want to be quick, and you want to be right.
Always ask, Whats the so what?
eliminate any analyses, no matter how clever or interest- ing, that didnt get you a
step closer to proving or disproving your original hypothesis.
weed out these irrelevancies.
What does it tell us, and how is that useful? What recommendation does it lead to?

Consulting isnt about analysis; its about insights. Crunching numbers for the sake
of crunch- ing numbers
test of So what?
Perform sanity checks. sounds plausible. within the bounds of prob- ability. Feasible.
noticeable impact
scenario analysis. assumptions behind the analy- sis dont make sense
How far off would our current answer need to be before we change our
conclusion? testing assumptions drivers. clearly identified.
draw inferences from the analyses
have to pull their whole organi- zation along with them. documented and
communicated some of their thought process,
When the facts change, I change my mind. What do you do, sir? John Maynard
Keynes
The 80/20 rule is not always strictly true; in one case, the true ratio may be 75/25,
in another 90/10. Furthermore, it is not universally applicable, but it occurs so
frequently as to make it a useful predictive tool.
which of your recommendations will yield the most value for your client, and focus
on them.
big wins first
The medium is the message. Mar- shall McLuhan
See through your clients eyes. Respect the limits of your clients abilities.
CEO focus top man- agement focus. key drivers: five or six priorities of the
organization
to concentrate on the clients foremost needs
have a good picture of what the CEO agenda
CEO focus touchstone your recommendation
add value how large will the payoff be?
internal rate of return and payback
Ask not what your analysis means to you; ask what it can mean to your client.
Actionable for the client. Does your client have the skills, systems, structures, and
staff to do what is required? Will outside forcescompetitors, suppliers, customers,
regulatorstake actions that will nullify the effects of your strategy?
under- standable to the organization as a whole. packaging of your message
one-page models You dont lose much by leaving out that detail either;

analysis to a level that an educated outsider can understand.

your job is to piece together a story from some, but not all, of those facts
We help our clients make change happen.
buy-in a compelling narrative leaving out facts that dont advance your story.
decide whether the companys stock is a good investment. Give five reasons why, in
order of their importance.
presentation and communication skills get their ideas acrossand get them
accepted.
maximum effect logical flow audience can absorb
structure unusual. We recommend starting with your conclusion
Having your conclusions or recommendations up front is inductive reasoning
a statement of conclusions up front in oral and written communications.
allows you to control how far you go into detail in your presenta- tion
already accepts your second point and doesnt need to be convinced with a lot of
data.
simply focus on two or three key points and articulate them well.
keep it simple not show off an art project.
perform a dress rehearsal and videotape it.
BUY-IN
bridging the information and trust gaps between you.
The information gap exists because you know more about your findings than your
audience does.
trust gap: too inexperienced to comment, mistrust you, an outsider, are overeducated (or not educated enough)
two ways to bridge these gaps:
Prewiring means taking your audience through your findings before you give your
presentation.
Tailor- ing means adapting your presentation to your audience, both before you
give it and, if necessary, on the fly.
advantages. It keeps you from getting blindsided by major objections to your
solution. helps you build a consensus. gives you a chance to adapt your solution to
the political realities. additional reality check on your findings
political landmines

battle of the presentations

There was still resistance, but at least I knew where it was coming from.
can debate your ideas, rather than your facts.
I used terms that were familiar to them, and I used an approach that was familiar to
them. I didnt use the consulting methodologythe consult- ing lingo,
even different parts of the same organization can have different languages.
each group has different expectations, different goals, and a different language.
Let me tell you what I think the problem is, let me tell you why
Being flexible, respectful of your audi- ence,
be aware of the physical circumstances: according to the setting, a conference
table, auditorium
Consider not just demonstrated ability, but potential ability
We depart, however, from the mainstream definition of diversity that values
individuals based on their race, sex, reli- gion, or dining preferences. we mean
diversity of experience
document your recruiting plan, addressing the following areas: business needs,
skill requirements, recruiting team, sources, and budget.
common mannerisms
general rules rather than McKinsey specifics:

Remember that you have two ears and only one mouth.
Its not just what you say, its how you say it.
Overcommunication is better than undercommunication.

The marginal cost of including additional people in the information flow is small
relentless focus on results
MANAGING YOUR CLIENT
obtaining, maintaining, and retaining
the locus of problem solving: it is best done in the clients backyard.
Life is for liv- ing, not for practice. Make the most of it.