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The Mckinsey Way : Using the Techniques of the World's Top Strategic Consultants to Help You and Your Business

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Simon London: Hence, these are absolutely critical steps. If you don’t do this well, you’ve just got a bunch of analysis. Simon London: OK. So step one—and there is a real art and a structure to it—is define the problem. Step two, Charles? 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

There are many tips on client management, but the general principle is to bring the client to your side. You never win by opposing the client. Remind them about mutual benefits. Do it everyday! Make one day a week to be completely free of work, both physically and mentally. Tell your boss about it! He/she will respect it. And so should you. Charles Conn: I think they’re entirely complementary, and I think Hugo’s description is perfect. When we do problem definition well in classic problem solving, we are demonstrating the kind of empathy, at the very beginning of our problem, that design thinking asks us to approach. When we ideate—and that’s very similar to the disaggregation, prioritization, and work-planning steps—we do precisely the same thing, and often we use contrasting teams, so that we do have divergent thinking. The best teams allow divergent thinking to bump them off whatever their initial biases in problem solving are. For me, design thinking gives us a constant reminder of creativity, empathy, and the tactile nature of problem solving, but it’s absolutely complementary, not alternative.With both types, the number 1 option is to subtly trade them out of your realm. When that is not possible, the next best option is to play ignorant. Leak out information only with the right “secret audience”. Charles Conn: It can be revolutionary. There are some areas in which the pattern recognition of large data sets and good algorithms can help us see things that we otherwise couldn’t see. But I do think it’s terribly important we don’t think that this particular technique is a substitute for superb problem solving, starting with good problem definition. Many people use machine learning without understanding algorithms that themselves can have biases built into them. Just as 20 years ago, when we were doing statistical analysis, we knew that we needed good model definition, we still need a good understanding of our algorithms and really good problem definition before we launch off into big data sets and unknown algorithms. I think sometimes when people think about seven steps, they assume that there’s a rigidity to this. That’s not it at all. It’s actually to give you the scope for creativity, which often doesn’t exist when your problem solving is muddled. Simon London: Let’s move swiftly on to step four. You’ve defined your problem, you disaggregate it, you prioritize where you want to analyze—what you want to really look at hard. Then you got to the work plan. Now, what does that mean in practice? Real meaning: The analysis just finished is so completely wrong that we can’t even claim it is directionally correct, or even that we found the right road.

Charles Conn: Availability bias is the one that I’m always alert to. You think you’ve seen the problem before, and therefore what’s available is your previous conception of it—and we have to be most careful about that. In any human setting, we also have to be careful about biases that are based on hierarchies, sometimes called sunflower bias. I’m sure, Hugo, with your teams, you make sure that the youngest team members speak first. Not the oldest team members, because it’s easy for people to look at who’s senior and alter their own creative approaches.Use visual aids: Visual aids, such as charts, graphs, and images, can help illustrate your points and make your presentation more engaging. Use them sparingly and make sure they are clear and easy to understand. 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 10: Hit singles Example: “You don’t need to look at the cost structure of each of the operations. Don’t boil the ocean.”

Chapter 7: The Fact-Based Approach This chapter explains the importance of using data to support one’s arguments. It provides advice on how to gather and analyze data effectively, and how to present data in a way that is compelling and persuasive. Charles Conn: For me, the most important thing is that we start with simple heuristics and explanatory statistics before we go off and use the big-gun tools. We need to understand the shape and scope of our problem before we start applying these massive and complex analytical approaches. Someone needs to step up to the plate. Implementation is tough and requires a great deal of work. After delivering the solution, it’s vitally important to put specific people (within the organization receiving the consulting services) in charge of implementing the solutions. If there isn’t a person responsible for the changes required, chances are the changes will not be implemented efficiently, if they are implemented at all.When faced with an amorphous situation, apply structure to it.” – Kristin Asleson, New York office, 1990-93; now working in Silicon Valley When you propose or work extensively with a 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.

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