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The McKinsey
Way
Introduction
In
his book, The McKinsey Way, Ethan Rasiel takes readers inside one
of the world's most prestigious strategic consulting firms. Drawing
on his own experience as an associate for McKinsey, Rasiel reveals
the secrets of the Firm's closely-guarded management techniques.
The McKinsey approach is systematic, flexible and effective. Hill
imparts his knowledge of the system which has developed within the
Firm in order to give businessmen and women the tools they need
to deal with their own business problems.
Part
I: The McKinsey Way of Thinking About Business Problems
In
Part 1, Rasiel attempts to explain the McKinsey approach to problem-solving
and some rules which structure the process.
Chapter
1: Building the Solution
McKinsey's
problem-solving process has three pillars:
- Fact-based
- Rigidly
structured
- Hypothesis
driven
Facts
At
McKinsey, facts are the foundation of problem solving. Facts aid
in the development of a sound hypothesis, and then provide the evidence
needed to support or refute it. Facts compensate for the lack of
instinct a consultant must face since he or she does not have a
lifetime of experience in the industry on which to draw. Facts also
bridge the credibility gap, lending respect to the analysis of newcomers.
Hiding from the facts is only a recipe for failure, because sooner
or later, the truth will show itself. Thus, a successful consultant
will find the facts and use them to his or her advantage.
MECE
One
of the most fundamental tenants of McKinsey problem solving is the
concept of MECE, mutually exclusive, collectively exhaustive.
MECE can be used when developing and listing issues related to the
problem at hand. First, the associate must ensure that the list
is mutually exclusive, or that every item is separate and distinct.
Then, she must check that it is collectively exhaustive, that it
includes every issue relevant to the problem. This approach prevents
overlap and confusion. A "major issues list" should contain
no less than two, and no more than five issues, with three being
the ideal number. The consultant must make a concerted effort to
fit each business problem faced by the company or non-profit under
one of the 2- 5 issues on the major issues list. If this fails,
there is always the option of creating a category of "other
issues", although this is most effective when utilized as a
sub-heading for presentation purposes.
Solve
the Problem at the First Meeting- The Initial Hypothesis
The
3rd pillar of the McKinsey problem-solving process is
the initial hypothesis (IH). The initial hypothesis serves as a
roadmap toward the solution. It is the solution that seems most
probable early in the engagement, after the group has brainstormed
using their knowledge of the situation, but before they have spent
a lot of time gathering additional information and analyzing. The
initial hypothesis may or may not prove correct, but it will provide
a starting point from which to work and it will guide the research
and early data analysis.
When
generating the IH, the group should begin with the facts. This does
not mean that the team must understand every facet of the industry
at this point. Rather, members can take a couple of hours with a
trade journal or expert in the field and develop a general overview
of the industry. Once members have a basic understanding of the
facts, they must apply structure to them. This is done first by
breaking the problem down into components, or key drivers. Then,
they make an actionable recommendation on each component. These
recommendations are taken and broken down still further. The team
then lists the issues that each recommendation raises. Now they
must consider possible answers to these issues. Then, they contemplate
what sort of analysis under each issue will be needed to prove or
refute the hypothesis. This exercise should give the team a better
idea of what is and is not provable, and clarify their approach.
The
end result of this exercise will be what McKinsey calls an issue
tree. This tree is a map of the solution with the hypothesis branching
out into each issue and recommendation. This model will serve as
the problem-solving map.
Once the IH has been developed, either individually or as a team,
it will be necessary to test it. When generating and testing an
initial hypothesis, it is best to work in small teams. Working in
a team will provide a wealth of ideas with which to work, and constructive
criticism will help point out the shortcomings of ideas that their
creators often have difficulty seeing themselves.
Chapter
2: Developing an Approach
The
problem is not always the problem
The
client's own diagnosis of the problem may not in fact be correct.
So, before setting about devising a solution, a consultant has to
dig deeper by asking questions, getting facts, and poking around
to ensure that he is heading down the right path. If an associate
feels that he is not working on the correct problem, he has the
option to go back to the client. He should let the client know that
while he was asked to focus on problem x, he feels that the real
impact will come from solving problem y. The consultant should be
able to back up this recommendation with facts. The client may or
may not accept the recommendation, but either way he has fulfilled
his obligation.
Don't
reinvent the wheel
Most
business problems are more similar than different. This means that
a large number of questions can be answered through use of a small
number of problem-solving techniques. McKinsey has standardized
a number of these techniques, and they have proved invaluable because
consultants are able to quickly place the facts and data into a
standard framework, and thus to gain added insight into the problem.
This allows the consultants to focus on the drivers of the problem
and move toward a solution.
One technique, which has proved especially valuable, is the Forces
at Work model. In this model, the consultants identify current suppliers,
customers, competitors, and possible substitute products. Then,
they list all changes occurring in each category and the effect,
positive or negative, that they may have on the client. They also
list any internal changes effecting the client or industry and determine
which of these changes could force adjustment to the client's operations.
This tool allows the consultants to develop an understanding of
the competitive market their client faces, as well as how this environment
might change.
Consultants
need to remember that every client is unique, and thus that there
are no cookie-cutter solutions. Similar problems do not necessarily
have similar solutions. Although the tools used for a problem may
be the same, they must be applied to every unique situation. It
is a mistake for consultants to generalize solutions. Rather, they
need to test their hypothesis with facts and analysis in order to
determine that the solution they have chosen is the correct one
for the situation at hand.
Don't
make the facts fit your solution
No
matter how inspired the team or individual finds its initial hypothesis
to be, it must be prepared to adjust that hypothesis if the facts
do not support it. The facts are static, so it is the solution which
must be flexible and dynamic in order to solve the problem.
Make
sure your solution fits your client.
It
is a consultant's job to recognize the unique strengths, weaknesses
and limitations of his/her client. In some cases, the best hypothetical
solution may be one that the client is unable to implement for any
number of reasons. In this case, the Firm has not succeeded in solving
the problem for the client, even if on paper, their proposed solution
was theoretically the best. Therefore, the consultant must take
into account the client's unique situation and ability or lack of
ability to implement any proposed solution. Sometimes, there are
a number of good ideas that would improve the client's business,
but there is only a finite amount of resources with which to implement
these solutions. In this case, the consultant must focus on the
solutions which will bring the maximum benefit from these finite
resources.
Sometimes
you have to let the solution come to you.
There
will be situations in which an initial hypothesis is impossible
to formulate. This could occur if the scope of the problem is large
and vague, if the client has no idea what the problem is, or if
the team is breaking new ground. Although this is not an ideal situation,
over time business problems become conquerable with the combination
of fact-based analysis and creative thinking.
Some
problems you just can't solve
solve them anyway
No
matter how good a consultant's intentions are, sometimes the group
will come up against a wall. This could come in the form of bad
or missing data, a business doomed to failure by the time the Firm
is called in, or hostile politics within the client organization.
When facing an obstacle to the solution, there are several options
from which to choose. First, the consultant could redefine the problem.
They could tell the client that the problem is not X, but rather
Y. This will be especially useful if solving problem Y will generate
much value, while X will cost time and resources for only a small
gain. This choice is especially effective early in the consultation.
Use of it later in the process can be seen as a copout. A second
option is to tweak the way to a solution. If your ideal solution
is impossible to implement at the present time, lengthen the time
line, and "tweak" toward the solution as hostile factors
subside. Finally, the consultants could choose to work through the
politics. They may recognize that their solution will change the
organization, and that this change will not be popular with all
groups. They must take into account the different factors driving
the politics, and attempt to build a consensus for the solution
with these in mind. This may mean that the solution must be changed
in order to gain acceptability. If this is the case, then they should
change it. No good will be brought to the company unless it is able
to accept what the Firm offers.
Chapter
3: 80/20 and Other Rules to Live By
80/20
The
80/20 is a pattern that emerges is management consulting. For example,
80% of sales come from 20% of the sales force. 80% of revenues come
from 20% of products. Once the team has the data, they can input
it into a spreadsheet or database and analyze it. The consultants
watch for patterns such as the 80/20 rule. In some cases, these
patterns will highlight problem areas, in others, areas of opportunity.
Don't
Boil the Ocean
Before
the consultants begin to gather and analyze data, they need to recognize
the priorities of their search, and focus on them. They have a limited
amount of time and resources to put into the analysis, so it is
imperative to concentrate on only the most relevant information.
In other words, work smarter, not harder.
Find
the Key Drivers
In
order to make the most of the analysis, McKinseyites focus only
on the very key issues at the core of the problem. It is here that
the fact-based analysis will offer the greatest return.
The
Elevator Test
In
order to sell the solution to busy customers and executives, the
consultant must be able to explain it in 30 seconds, the time it
takes an elevator to reach the lobby. In order to do this, she will
focus on the most important recommendations, no more than three,
and their respective payoffs. She will have to save the supporting
data for later in order to accomplish this task.
Pluck
the Low-Hanging Fruit
Sometimes
during the long problem-solving process, there arises an opportunity
for an easy win. McKinsey consultants are taught to take these opportunities.
There is no reason to save or hold their information for a final
presentation. It is a much better strategy to show the client that
the client's success is their top priority by making small changes
along the way. Small victories boost morale for the team, add credibility
to the exercise, please the client, and may help win over dissenters.
But, as the Firm takes these small victories, they must also ensure
the client that they have not lost sight of the greater solution.
Make
a Chart Every Day
A
consultant should learn something new every day. The best way to
deal with this new knowledge is to write it down. At the end of
each day, the associate should make a chart or bulleted list of
the three most important things she learned. When it is time for
analysis, she can go back to these charts and contemplate how they
can fit into her solution.
Hit
Singles
In
the business world, it is better to consistently hit singles, i.e.
perform the job to expectations, than to sporadically hit home runs.
There are three reasons for this. First, it is impossible to do
everything alone all the time. The other members of the team should
be capable and motivated. Thus, the team should trust each member
to do his or her own job. Secondly, if an associate is able to hit
the business homerun once, it raises expectations for himself and
those around him, expectations he may not be able to realize on
a consistent basis. Finally, once an associate fails to meet expectations,
it is very difficult to regain credibility. So, a wise consultant
will concentrate on doing his job and doing it well.
Look
at the Big Picture
When
the team is bogged down in analysis, benefits can be wrought by
taking a step back and looking at the "big picture". Associates
can go back to their initial hypothesis and key drivers. They can
asses how what they are doing relates to these priorities. If their
current efforts will not lead you to a solution, they need to stop
what they are doing and find a path that will.
Just
Say "I Don't Know"
Professional
integrity should be a hallmark of a management consultant. Part
of this integrity is honesty, with the client, the team, and within
the individual. Sometimes a consultant will simply not know the
answer to something. In this case, the consultant should be honest
and admit that they do not know. People will understand, and the
admission will be much less costly than a bluff.
Don't
Accept "I have no idea"
When
a McKinseyite asks someone a question about their business and they
reply, "I have no idea", they take this as a challenge.
With a few well-directed questions, a good consultant can usually
uncover the information she needs, or at least an educated guess.
McKinsey consultants do not accept "I have no idea" from
others, they do not accept it from themselves, and don't expect
others to accept it from them.
Part
II: The McKinsey Way of Working to Solve Business Problems
Part
II illustrates the manner in which the Firm implements its solutions
on a day-to-day basis. From selling to organizing to brainstorming,
this section takes the reader through the experience of participating
in a McKinsey study.
Chapter
4: Selling a Study
How
to Sell without Selling
McKinsey
does not "sell". It does not make cold calls, advertise
in trade journals or knock on doors. Rather, it waits for customers
to come to the Firm. Why do they come? Because although McKinsey
does not sell, it does market. The Firm markets to potential clients
in a number of ways. First, the Firm produces a steady stream of
influential and widely read books and articles. Furthermore, it
publishes its own scholarly journal, which is distributed free to
clients and former consultants. McKinsey invites media coverage,
and its partners and directors are often nationally and internationally
known experts. McKinsey also encourages members of the Firm to participate
in informal forums such as non-profit boards of directors in order
to make client contacts. Consultants make presentations and speak
at industry conferences. They also make follow-up visits to former
clients, both to gauge the effects of McKinsey work, and to keep
the firm in the client's mind should any further work arise.
Not
everyone will have access to the most exclusive events and clients,
but through trade shows, conferences, even the right restaurants
and bars, anyone can make these connections. Consultants should
keep in close contact with current and former clients. Also, there
is an advantage to meeting competitors. One day they could switch
jobs and become a potential client. A consultant should seek prominence
and establish a strong reputation in order to ensure that his will
be the name the customers think of the next time they have a problem.
Be
Careful What you Promise: Structuring an Engagement
When
structuring a project, it is essential that the Firm does not bite
off more than it can chew. It has to strike a balance between what
the client wants and what the team can realistically do. The ideal
project is one, which can be completed in three to six months with
tangible results for the client. The saaviest coordinators will
tell the client that they will accomplish x and y. He will then
explain that they could do Z, but it would kill the team. At the
same time, he would tell the team that they promised the client
Z, and must get it done. Of course, in order to do this, Z must
be within the limits of the team, while challenging them to their
maximum output.
Chapter
5: Assembling a Team
Getting
the Right Mix
Team
selection is a critical component of any job, and team members must
be chosen carefully from the pool of resources available. Intelligence,
experience and skills are the factors of greatest importance. The
team is best constructed with knowledge of the particular problem,
and the skills, which will be most necessary in order to solve it.
If the leader does not know potential team members personally, she
would be wise to interview them before making a decision. This allows
her to determine whether others evaluations of the person were correct,
and lets her gauge how the personality will fit in with the rest
of the team. The team will be spending a large amount of time together,
and its performance will reflect on the leader, so must choose wisely.
A
Little Team Bonding Goes a Long Way
At
McKinsey, team bonding activities like dinners, ball games and movies
are expected, but very little of this formal bonding is needed to
solidify the team. The team will be working together for long hours,
eating lunch together, and travelling together to out of town engagements.
What is important is that the team works well together, that members
know that their ideas are respected, and that they feel that there
is respect for their time and lives outside of the Firm. If team
bonding activities are necessary, an attempt should be made to limit
them to lunch engagements, and if this is not possible, significant
others should be included in plans.
Take
Your Team's Temperature to Maintain Morale
Maintaining
the team's morale is the on-going responsibility of the team leader.
He has to talk to his teammates, and if they are unhappy, he must
take remedial action immediately. Second, he needs to steer a steady
course. He must keep in line with his priorities, and if a change
needs to be made, explain his reasoning to the team so that they
can understand what is going on. The leader needs to let the team
know why they are doing what they are doing, so that they are able
to see value in their work. Teammates should be treated with respect
and the leader should make an effort to get to know them as people.
Finally, when things become difficult, the leader has to be able
to let them know that he sympathizes with them, even if there is
little else he can do to remedy the situation.
Chapter
6: Managing Hierarchy
Make
your boss look good
The
best way to make the boss (and strategic partners outside of the
organization) happy is to make him/her look good. This is accomplished
by a consultant doing her job to the best of her ability, and by
making sure that the boss knows everything that she knows when she
needs to know it. By making the boss look good, the associate not
only makes him/her happy, but she also makes herself look good in
the process.
An
Aggressive Strategy for Managing Hierarchy:
An
associate should assert his equality in the organization until someone
tells him not to. He should assume that he has the authority to
ask questions, make comments, etc. In more rigidly hierarchical
organizations, however, the associate must tread carefully and be
prepared to back down at any sign of displeasure with his tactics.
Chapter
7: Doing Research
Don't
Reinvent the Wheel (Part II)
Very
few business problems are unique, which means that someone has probably
dealt with them before. The people who worked on these problems,
and the research their work generated can be invaluable, and timesaving
resources. The team can use colleagues, data, files, training manuals,
trade magazines, newspapers, the library, the Internet, competitors,
and any other sources that might provide a head start.
Specific
Research Tips
When
doing research, the company or non-profit's annual report is always
a good place to begin. The researcher should look for outliers.
Outliers are things which are especially good or bad. In order to
identify them, the researcher can input the data into a spreadsheet,
and then use the outliers as areas for research. The researcher
should be looking for best practice. His goal should be to find
out who the best performers in the industry are and imitate them.
He can talk to other people in the industry to uncover their secrets.
Sometimes best practice will be within the researchers own company
in a certain division or area. In this case, he must determine how
to implement their strategies on an organization-wide level.
Chapter
8: Conducting Interviews
Be
prepared: Write an Interview /Meeting Guide:
Having
a guide for an interview or meeting prepared before it begins will
ensure the best possible use of the consultant's time, and of that
of the interviewee. When constructing the guide, the interviewer
should first think of which questions she needs answers to. Then,
she should consider what the main insight that she is really trying
to get out of the interview is. This second point will help to focus
the questions and order them. Before entering into the interview,
the consultant should research her interviewee. She will be well
better prepared if she knows their personality and can structure
the interview/ meeting accordingly. The interview/meeting can begin
with "warm up" questions about the industry in general.
A good trick is to ask a question or two to which the interviewer
thinks that she already knows the answer. Answers to these questions
serve two purposes. First, they allow the interviewer to gauge the
knowledge and honesty of the interviewee. Second, she might be provided
with an answer that will give her a different perspective, or an
additional answer to a complex problem that she had not considered.
Before closing the interview, the interviewer should ask the person
she is interviewing if there is anything else they would like to
tell her, or if there is anything she forgot to ask. Sometimes,
this will yield very useful information.
When
Conducting Interviews, and Meetings in General, Listen and Guide:
When
interviewing, the consultant needs to ask questions to guide the
conversation, but should allow the interviewee to do the talking.
She needs to make it clear that she is listening and interested
in what the person is saying by using verbal placeholders such as
"yes" and "I see". Also, she should use positive
body language such as leaning slightly forward when the person is
speaking. If the interviewer wants the person to say more than they
have, she can simply say nothing. Most people will start talking
to fill the uncomfortable gap of silence.
Seven
Tips for Successful Interviewing:
- Have the
interviewee's boss set up the meeting.
- Interview
in pairs
- Ask open-ended
questions and talk as little as possible.
- Paraphrase
what has been said and repeat it back to the interviewee to
ensure
- that they
are understand correctly.
- Be sensitive
to the interviewee's feelings.
- Don't ask
for too much or press too hard.
- Use the
Colombo tactic- After the interview has ended and everyone has
become more relaxed, say "There's one more thing I forgot
to ask".
Difficult
Interviews
Eventually,
every member of the Firm will run into a difficult interview. This
could be a hostile interviewee, one who refuses to give information,
or the "sandbagger", the interviewee who will talk all
the interviewer wants, but won't divulge information. There are
a variety of techniques that can be used. First, if the consultant
has the backing of the top management at the company, he can challenge
the subject and not back down. Secondly, the consultant can "pull
rank" and threaten to alert the boss to the subject's lack
of cooperation. Finally, the team could look for another person
in the organization who can give them the same information, and
if there is no one else, they may need to ask the subject's boss
to have a word with him or her.
Always
write a thank-you note:
After
taking time from someone's day for an interview, it is appropriate
to write the person a polite and professional thank-you note.
Chapter
9: Brainstorming
Proper
Prior Preparation
An
associate cannot enter the brainstorming session without advance
planning. First, he needs to consolidate his research into a 'fact
pack', a neatly organized summary of key data, and distribute it
to the team. By having every member of the team read every fact
pack, each member should enter the session with a roughly equal
base of knowledge. The team leader should have an initial hypothesis
ready before entering the meeting. Other members may want to derive
a set of hypotheses that the group will probably derive so that
they can quickly dismiss impractical hypothesis and devote more
attention to plausible ones.
In
a White Room
The
brainstorming session should begin with no preconceptions on the
part of the team members. Even though they have prepared for the
session, they must be open to new ideas. Also, everyone should participate
in the session , regardless of standing in the hierarchy. Here are
some additional Rules of the Road:
- There
are no bad ideas
- There are
no dumb questions
- Be prepared
to kill your own ideas. If your hypothesis is not part of the
team's solution at the end of the session, let it go.
- Know when
to say when. As time wears on, people get tired, cranky, and
the returns of brainstorming diminish. Try to keep sessions
to 2 hours if possible, and if not, take breaks or continue
the next day.
- Get it
down on paper. Don't leave the session without a permanent record
of the final outcome.
Brainstorming
Exercises:
- The
Post-It Exercise- The leader passes out post-it notes and
has the team write down all relevant ideas and pass them to
the leader who reads them out loud.
- The
flipchart Exercise- A number of flip charts are stationed
around the room marked by category or issue. Each member is
issued a different colored marker and writes his or her relevant
ideas on each chart.
- Bellyaches
up front- The session is held in a large room with all relevant
players. First, members are asked to state everything that they
didn't like about the program first. Then are asked for positive
evaluations.
Part
III: The McKinsey Way of Selling Solutions
Once
the solution has been analyzed and structured, McKinsey has to convince
the client to support it. Without this crucial recognition, the
solution is worth nothing. In this stage, internal communication
and presentation are key to success.
Be
Structured:
The
team must take the organizational analysis that they used in their
analysis and apply it to the presentation. The presentation should
be clear and guide the audience through the team's thinking in clear,
logical steps.
Remember
that there are diminishing marginal returns to effort:
At
some point, the team has to draw the line and resist temptations
to make further changes to the presentation. One good way to let
go is to insist that the documents be copied, bound, etc. 24 hours
prior to the presentation. Members must accept that large documents
will have a small number of insignificant typos, and let go. Then
the team can spend the last day before the presentation rehearsing,
anticipating questions, and resting. Time spent in this fashion
will yield a much higher return than that spent compulsively checking
for minor errors.
Prewire
Everything:
There
should be no surprises on the day of the presentation. All of the
major players should be taken through the solution in private. This
way, necessary negotiation, compromise, and new facts that are integral
to the acceptance of the proposal will be integrated by the time
of the presentation. Prewiring removes much of the risk from the
presentation and allows the team to shine.
Chapter
11: Displaying Data With Charts:
Keep
it simple- One message per chart:
Charts
and graphs are an invaluable tool with which to communicate information
to the client. When using charts and graphs, the key is to keep
it simple. Too much information will overwhelm the audience, and
the information the team is attempting to o highlight will be lost.
Each chart should attempt to convey only one message. Also, fancy
computer graphics and extensive use of color can actually detract
from the original purpose of the chart. The creator should pick
the point that the presenter wishes to make with the chart, and
insert it into a one sentence "lead" in the caption at
the top of the chart. It is also important to be certain to the
source in a caption at the bottom. Finally, the presentation should
use the minimum amount of charts necessary to communicate the information.
Too many will bore the audience.
Use
a Waterfall Chart:
Seldom
seen outside of McKinsey, the waterfall chart is an effective way
show how to get from A to B. The chart is like a bar graph, and
always begins on the left with a column that begins at zero. Then,
moving to the right, positive items extend upward, beginning at
the highest point of the last column, and negative values extend
downward in the same fashion.
Chapter
12: Managing Internal Communications
Keep
the information flowing:
Information
flow is essential for successful teams. A leader has to make sure
that both the team members and their boss are up to date at all
times. One way to facilitate information flow is regular meetings.
Meetings should be regularly scheduled, administered by a competent
and respectful leader, and should adhere to a short and briskly
executed agenda. Another method of internal communication is learning
by walking around. Chance encounters at the water cooler, in the
corridor, on the way to lunch, etc, can be surprisingly insightful.
Three
keys to an effective message:
E-mails,
voice mails, and memos should be treated as mini presentations.
They should be brief, covering only the information the recipient
needs to know, thorough, covering all of the information that the
recipient needs, and structured in a form that will effectively
convey that information.
Always
look over your shoulder:
A
consultant should ask him or herself these questions to determine
whether there is need for confidentiality with respect to the business
problem: What would happen if he were sitting on an airplane and
one of the competitors saw what he was working on? What about someone
from his company who was working on a different project saw? What
about his boss? If there is a need for confidentiality in the work,
then it is the consultant's duty to take precautions. He should
lock papers in his desk and file cabinet before you leaving for
the night. Consultants should not tell their significant other unless
they are certain they are not a security risk. They should not take
anything a competitor or journalist might find interesting out in
public. Finally, they must be careful with faxes, e-mails and voice
mails. They can easily end up in the wrong hands.
Chapter
13: Working with Clients
Keep
the Client Team on your side:
When
working with a client team, the consultants can first get the clients
on their side by making the Firm's goals and their goals synonymous.
The Firm can make the experience a positive one for them by reminding
the team that they will gain new skills and the opportunity to effect
real change in their organization. Also, in the instance of client
teams, team bonding may be more appropriate. The consulting team
and client teams are not bound by the same experience, and bonding
can help both sides to understand each other better.
How
to deal with "liability" client team members:
There
are two types of "liability" team members: the useless
and the hostile. The useless is someone who either refuses to participate,
or is too incompetent to be of any use. The best remedy for the
useless is to trade him off the team for someone better, but if
this is not possible, the team may give him a small and noncritical
area of the work that someone else on the team has the expertise
to do if necessary. The other case is that of the saboteur. The
saboteur is usually backed by a faction of the company hostile to
the Firm's consulting work. Once again, the best strategy is to
try to trade this hostile force off of the team. Otherwise, the
team should make use of his talents where it can, and keep sensitive
information out of his hands. The consulting team must try to understand
his agenda, and thus that of his supporters. This may be useful
information when forming the solution. Sometimes "liability"
members can be brought around. If not, the team has to make the
best of the situation and do its job.
Engage
the client in the process:
In
order to gain the client's support, it must be engaged in the process.
Engagement can be defined as supporting consulting efforts, providing
resources as needed, and caring about the outcome. The Firm needs
to understand the client's interests, and to make them see how the
Firm's efforts will benefit them. The team should keep the client
updated on its progress, and make use of the "easy victories"
discussed earlier in the book. Team members must accept that the
client team may take credit for its work in the end, but this is
a small price to pay for support and implementation of the solution.
Get
Buy-in throughout the organization:
Once
the Firm has its proposal to the CEO and board of directors, it
is imperative that the consultants gain support for the solution
throughout all levels of the client organization. Presentations
should be tailored to each level. Presenter should show respect
to each audience, whether it be the upper management team or the
production line. It is also important to make sure that each audience
understands how they fit into the larger picture of the solution.
Gaining support on all levels will promote the success of the solution.
Be
Rigorous about Implementation:
Before
the team begins the implementation process, it must develop a detailed
plan. The plan should be specific in regard to what needs to happen,
when it will happen, and who will be responsible for it. The consultants
should choose reliable people with the skills to carry out each
task, and enforce deadlines. If the consultants are not going to
be personally in charge of the implementation process as a whole,
they have to choose someone who not only has the skills to carry
out the operation, but the attitude needed to enforce compliance.
Part
IV: Surviving at McKinsey
Success
in any high-pressure organization required a certain number of survival
skills. In this section, Rasiel shares tricks to maintaining sanity
while working crazy hours under high stress. He also sheds light
on the McKinsey recruiting process which provides the Firm with
a steady stream of bright new survivors.
Chapter
14: Find your own Mentor
In
making one's way through the jungle which is the business world,
it will help to have a guide. Junior associates should seek out
a person who is senior to them in their organization and whose work
and opinions they respect. They should be able to go to this person
for advice and to provide an example. If possible, an associate
should work with his or her mentor, and learn all that he/she has
to offer.
Chapter
15: Surviving on the Road
Many
consulting jobs will require long days, weeks and even months of
rigorous travel. Since these business trips are a part of the job,
there is no recourse but to make the best of it. The following advice
will help to ease time spent on the road:
- Maintain
a positive attitude. Look at the trip as an adventure, and occasionally,
act like a tourist and enjoy the unique aspects of the destination.
- Plan properly:
Try to schedule trips so that you will be home on a Friday or
Monday. Learn what you need and pack light. Prepare with information
that will make your trip less stressful such as directions,
reliable cab companies, etc.
- Find ways
to entertain yourself after work. Call old friends or colleagues.
Go out socially with client team members. At the very least,
watch TV or read a book unrelated to work before bed.
- Finally,
treat everyone with respect. It will keep your own stress level
down and you will reap unexpected benefits.
Chapter
16: Take these three things with you wherever you go
Before
embarking on a business trip, a business traveler should be certain
that she has all the necessities. These include PTM (passport, tickets,
and money), as well as an itinerary, names and numbers of everyone
she is going to see, and a good book. She should also pay special
attention to clothing, business tools, personal care items, things
to keep organized and in touch, and diversions.
Chapter
17: A good assistant is a lifeline
In
order to attract the best secretaries available, McKinsey offers
them a real career path with chances to move higher up in the secretarial
hierarchy, as well as into administrative management. Secretaries
are vitally important not only in order to perform traditional tasks
such as filing and typing, but also to serve as a lifeline to busy
consultants who may spend long periods of time at the office or
out of time. McKinsey secretaries take care of personal needs for
consultants, such as paying bills when they are away from home,
as well as business needs.
Since
the secretary serves as a lifeline, it is necessary to treat him/her
well. This goes beyond a Christmas gift and flowers on secretary's
day, however. A respectful consultant should provide the secretary
with all the information they need to do their jobs. This includes
notice of where the consultant is at all time, and what they expect.
Also, if the secretary is capable, it is important to allow some
initiative for him/her to make decisions on his/her own.
Even
if a consultant does not have a full-time secretary, the same rules
of respect and consideration apply. A good relationship with the
temp, part-time assistant, or junior team member who performs these
task will benefit both parties.
Chapter
18: Recruiting McKinsey-Style: How to do it
In
order to recruit the best possible associates for the Firm, McKinsey
draws from the top of the most elite business, law, and economics
schools. It also seeks to recruit nontraditional candidates such
as doctors, scientists, and politicians. In order to acquire the
best candidates, McKinsey devotes a number of its top people, and
a great deal of money, to this task.
Once
the best people have been scouted, McKinsey resorts to the interview
in order to choose the McKinsey team. The most valuable attribute
is an analytical thinker, one who can take a problem apart and break
it into its components. In order to judge this ability, McKinsey
uses cases. In solving these cases, the candidate is judged on how
well he or she breaks the case into pieces, asks relevant questions,
and makes prudent assumptions when necessary.
Beyond
mere intelligence and analytical power, McKinsey recruiters also
look for personality. The candidate must be a team player, and their
personality must fit the Firm. So, the key to an offer of employment
at McKinsey is simple: The person must be of above-average intelligence
with top grades from a good college and elite business school. They
need to have a record of substantial achievement at previous employers,
a bright analytical mind, and a personality that fits well with
the firm.
Chapter
19: If you want a life, lay down some Rules
When
working 80 - 100 hours per week, the only chance an associate has
to have any sort of life outside of work is to lay down some ground
rules. First, they should make one day a week off-limits, usually
Saturday or Sunday. They should let their boss, spouse, children
and co-workers know that they will be unavailable for work on this
day, except for absolute emergencies. Most of the time this rule
will be respected. Second, it is a mistake to take work home. Even
if it means staying later at the office, it is a good idea to make
home a haven without work. Finally, planning ahead is key. With
their busy schedules, businesspeople will be left behind on the
weekends if they don't take the initiative and plan ahead.
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