ABOUT THE PROBLEM-SOLVING PROCESS

Our benchmark is the problem-solving process as practiced by

McKinsey. At the most abstract level, McKinsey develops solutions

to clients’ strategic problems and, possibly, aids in the implementation

of those solutions. Figure I-1 depicts our theoretical model

of problem solving, which breaks the process into six discrete elements.

In The McKinsey Mind, we will focus on the central triangle

of this model (the items in bold).

Problem Solution

Data

Intuition

Managing

• Team

• Client

• Self

Presenting

• Structure

• Buy-in

Analyzing

• Framing

• Designing

• Gathering

• Interpreting

Business Need

• Competitive

• Organizational

• Financial

• Operational

Implementation

• Dedication

• Reaction

• Completion

• Iteration

Leadership

• Vision

• Inspiration

• Delegation

Figure I-1. Strategic Problem-Solving Model

• Business Need—You can’t have problem solving without a

problem or, more broadly, a need on the part of the client.

In business, those needs come in several forms: competitive,

organizational, financial, and operational.

• Analyzing—Once your organization has identified the

problem, it can begin to seek a solution, whether on its

own or with the help of McKinsey (or any other outside

agent). McKinsey’s fact-based, hypothesis-driven problemsolving

process begins with framing the problem: defining

the boundaries of the problem and breaking it down into

its component elements to allow the problem-solving team

to come up with an initial hypothesis as to the solution.

The next step is designing the analysis, determining the

analyses that must be done to prove the hypothesis, followed

by gathering the data needed for the analyses.

Finally comes interpreting the results of those analyses to

see whether they prove or disprove the hypothesis and to

develop a course of action for the client.

• Presenting—You may have found a solution, but it has no

value until it has been communicated to and accepted by

the client. For that to happen, you must structure your

presentation so that it communicates your ideas clearly and

concisely and generates buy-in for your solution for each

individual audience to which you present.

• Managing—The success of the problem-solving process

requires good management at several levels. The problemsolving

team must be properly assembled, motivated, and

developed. The client must be kept informed, involved, and

inspired by both the problem-solving process and the solution.

The individual team members (that’s you) must strike

a balance between life and career that allows them to meet

xvi Introduction

• the expectations of the client and the team while not

“burning out.”

• Implementation—Your organization may have accepted

your solution, but it must still implement it. This requires

the dedication of sufficient resources within the organization,

the timely reaction of the organization to any stumbling

blocks that may arise during implementation, the

focus of the organization on completion of the tasks necessary

for full implementation. In addition, the organization

must institute a process of iteration that leads to continual

improvement. That process requires reassessing implementation

and rededicating the organization to make additional

changes identified during reassessment.

• Leadership—At the nexus of solution and implementation

comes leadership. Those at the helm of your organization

must conceive a strategic vision for the organization. They

must also provide inspiration for those in the organization

who will do the hands-on work of implementation. Finally,

they must make the right judgments regarding delegation

of authority in overseeing implementation throughout the

organization.

There is one other piece of the model: the tension between intuition

and data. Problem solving doesn’t take place in a vacuum.

Even McKinsey has only so many resources to throw at a problem

and a limited time in which to solve it. While we are advocates

for McKinsey-style fact-based problem solving, we recognize

that it’s practically impossible to have all the relevant facts before

reaching a decision. Therefore, most executives make business

decisions based partly on facts and partly on intuition—gut instinct

tempered by experience. We will discuss the pros and cons of each element later in the book. For now, we will simply say that we

think a sound decision requires a balance of both.

As we mentioned, The McKinsey Mind will focus on the central

triangle of the consulting process—problem solving, presenting,

and managing—that constitutes the day-to-day work of a

McKinsey consulting team. In Chapters 1 through 4, we discuss

McKinsey’s fact-based, hypothesis-driven problem-solving process

and show how you can use it to tackle the complex problems that

arise in your own organization. In Chapter 5, we introduce strategies

for presentation that will allow you to get your ideas across

with maximum impact, whether your audience is your boss, your

board, or your entire company. Finally, in Chapters 6 through 8,

we cover the management techniques you need to ensure that your

own problem-solving efforts run smoothly. Client needs, leadership,

and implementation are beyond the scope of The McKinsey

Mind; they are topics for another day and, perhaps, another book.

The chapters of The McKinsey Mind follow the same general

structure. Each chapter (except Chapter 2) is divided into two or

more sections. Each section begins with a brief discussion of the

topic at hand, followed by a summary of the relevant lessons from

The McKinsey Way. Next comes a discussion of the new lessons

we learned from our alumni along with illustrations of successful

implementation, followed by suggestions for implementing these

lessons in your own organization. Each section ends with exercises

to help you understand and practice the lessons of the section.

Since the book follows the problem-solving process from start

to finish, we recommend that you read the book that way, too, at

least for the first time through. Having said that, each chapter of

The McKinsey Mind is more or less self-contained, and you can

easily treat the book as a reference on the topics that are most

interesting and relevant for you. If you lack the time or patience

to read the book from cover to cover, then we suggest at least reading Chapter 1 before diving into the rest of the book, as the other

chapters refer frequently to the concepts therein. However you

decide to read it, we hope The McKinsey Mind helps you become

a better problem solver and decision maker.

Our benchmark is the problem-solving process as practiced by

McKinsey. At the most abstract level, McKinsey develops solutions

to clients’ strategic problems and, possibly, aids in the implementation

of those solutions. Figure I-1 depicts our theoretical model

of problem solving, which breaks the process into six discrete elements.

In The McKinsey Mind, we will focus on the central triangle

of this model (the items in bold).

Problem Solution

Data

Intuition

Managing

• Team

• Client

• Self

Presenting

• Structure

• Buy-in

Analyzing

• Framing

• Designing

• Gathering

• Interpreting

Business Need

• Competitive

• Organizational

• Financial

• Operational

Implementation

• Dedication

• Reaction

• Completion

• Iteration

Leadership

• Vision

• Inspiration

• Delegation

Figure I-1. Strategic Problem-Solving Model

• Business Need—You can’t have problem solving without a

problem or, more broadly, a need on the part of the client.

In business, those needs come in several forms: competitive,

organizational, financial, and operational.

• Analyzing—Once your organization has identified the

problem, it can begin to seek a solution, whether on its

own or with the help of McKinsey (or any other outside

agent). McKinsey’s fact-based, hypothesis-driven problemsolving

process begins with framing the problem: defining

the boundaries of the problem and breaking it down into

its component elements to allow the problem-solving team

to come up with an initial hypothesis as to the solution.

The next step is designing the analysis, determining the

analyses that must be done to prove the hypothesis, followed

by gathering the data needed for the analyses.

Finally comes interpreting the results of those analyses to

see whether they prove or disprove the hypothesis and to

develop a course of action for the client.

• Presenting—You may have found a solution, but it has no

value until it has been communicated to and accepted by

the client. For that to happen, you must structure your

presentation so that it communicates your ideas clearly and

concisely and generates buy-in for your solution for each

individual audience to which you present.

• Managing—The success of the problem-solving process

requires good management at several levels. The problemsolving

team must be properly assembled, motivated, and

developed. The client must be kept informed, involved, and

inspired by both the problem-solving process and the solution.

The individual team members (that’s you) must strike

a balance between life and career that allows them to meet

xvi Introduction

• the expectations of the client and the team while not

“burning out.”

• Implementation—Your organization may have accepted

your solution, but it must still implement it. This requires

the dedication of sufficient resources within the organization,

the timely reaction of the organization to any stumbling

blocks that may arise during implementation, the

focus of the organization on completion of the tasks necessary

for full implementation. In addition, the organization

must institute a process of iteration that leads to continual

improvement. That process requires reassessing implementation

and rededicating the organization to make additional

changes identified during reassessment.

• Leadership—At the nexus of solution and implementation

comes leadership. Those at the helm of your organization

must conceive a strategic vision for the organization. They

must also provide inspiration for those in the organization

who will do the hands-on work of implementation. Finally,

they must make the right judgments regarding delegation

of authority in overseeing implementation throughout the

organization.

There is one other piece of the model: the tension between intuition

and data. Problem solving doesn’t take place in a vacuum.

Even McKinsey has only so many resources to throw at a problem

and a limited time in which to solve it. While we are advocates

for McKinsey-style fact-based problem solving, we recognize

that it’s practically impossible to have all the relevant facts before

reaching a decision. Therefore, most executives make business

decisions based partly on facts and partly on intuition—gut instinct

tempered by experience. We will discuss the pros and cons of each element later in the book. For now, we will simply say that we

think a sound decision requires a balance of both.

As we mentioned, The McKinsey Mind will focus on the central

triangle of the consulting process—problem solving, presenting,

and managing—that constitutes the day-to-day work of a

McKinsey consulting team. In Chapters 1 through 4, we discuss

McKinsey’s fact-based, hypothesis-driven problem-solving process

and show how you can use it to tackle the complex problems that

arise in your own organization. In Chapter 5, we introduce strategies

for presentation that will allow you to get your ideas across

with maximum impact, whether your audience is your boss, your

board, or your entire company. Finally, in Chapters 6 through 8,

we cover the management techniques you need to ensure that your

own problem-solving efforts run smoothly. Client needs, leadership,

and implementation are beyond the scope of The McKinsey

Mind; they are topics for another day and, perhaps, another book.

The chapters of The McKinsey Mind follow the same general

structure. Each chapter (except Chapter 2) is divided into two or

more sections. Each section begins with a brief discussion of the

topic at hand, followed by a summary of the relevant lessons from

The McKinsey Way. Next comes a discussion of the new lessons

we learned from our alumni along with illustrations of successful

implementation, followed by suggestions for implementing these

lessons in your own organization. Each section ends with exercises

to help you understand and practice the lessons of the section.

Since the book follows the problem-solving process from start

to finish, we recommend that you read the book that way, too, at

least for the first time through. Having said that, each chapter of

The McKinsey Mind is more or less self-contained, and you can

easily treat the book as a reference on the topics that are most

interesting and relevant for you. If you lack the time or patience

to read the book from cover to cover, then we suggest at least reading Chapter 1 before diving into the rest of the book, as the other

chapters refer frequently to the concepts therein. However you

decide to read it, we hope The McKinsey Mind helps you become

a better problem solver and decision maker.