Ethan M. Raisel: The McKinsey Mind
Framing the problem:
McKinsey solves problems in a structured, hypothesis-driven manner.
A hypothesis greatly speeds up your quest for a solution by sketching out a roadmap for research and analysis.
Helps you prioritize.
We have access to far more information than we can possibly use, so we must filter to get only the most relevant facts.
We have limited time, resources, or funds, so we need to follow one path of a framework at a time, in priority order.
I’d rather be mostly right than precisely wrong.
Skepticism early on in the problem solving process could save you a lot of frustration down the road.
You will be doing your client a service by getting to the real problem.
When planning your analysis, figure out what factors most affect the problem, and drill down on those.
Keep sight of the big picture by taking a step back and looking at what you’re trying to achieve. Remember how this piece fits into the big picture, moves your closer to your goal.
Use your issue tree to move down to the core issues, then ask hypotheses you can support or refute with data.
You have to recognize quickly when “Ah, this is interesting, but not very relevant”
For forward-looking analysis it is useful to answer in “the comfort zone”—directionally correct and of the right order of magnitude (because many variables, like demand and competitors entering, are subject to change)
You want to know if you’re in the ballpark with back-of the envelope analysis.
Your end product should end in a work plan.
Gathering data:
Read the annual report (especially message to shareholders)
Look for outliers (isolate key opportunities for the firm to investigate, compare measures of high performers and low performers in the industry, etc.).
Look for best practices (look at competitors and top-performers inside the industry and across industries.
Interviewing is one of the best ways to gather data.
Focus on identifying the right people, ask the right questions (send in advance, 3-4 only + “is there anything I forgot to ask?”), and diligently document answers.
Can go beyond data gathering to create buy-in.
Have the interviewee’s boss set up the meeting.
Interview in pairs.
Write a thank-you note (confirm understanding/takeaways if necessary).
Drawing conclusions from analysis:
Make a chart every day.
Make a chart or just a few bullet points with the three most important things you learned that day.
“When the facts change, I change my mind. What do you do, sir?”
When the facts contradict your hypothesis, you should change your hypothesis.
Don’t make the facts fit your solution.
The key metric for solutions is: “is this going to make a difference?”
Focus on the key drivers.
“We believe X because of reasons A, B, C”
Common mannerisms at McKinsey:
- EOD
- So what
- Client impact
- Brief emails
- Grouping issues in threes
- Responses to requests within 24 hours
- Listen more than you speak
A little team bonding goes a long way.
When the team spends 14 hours a day, 6 days a week working together, the last thing the team members want to do in their precious remaining time is go out on a team outing to Disney World.
Bonding can take place at work too to lighten up at times, or introduce a game.
A new location can also make a world of a difference.
Reward well. - trophies, gifts, bonuses, praise in front of the team.
To gain support you want to involve people in the process as much as possible.
Send surveys.
Ask for opinions.
Ask for volunteers.
Maximize buy-in.
Everyone can use a few more “way to gos” and “attaboys”
Helps people improve the good things and feel good.
Lol: “We liked the the 35-hour workweek so much we did it twice a week”